Stock market today: Nifty 50, Sensex rebound from day’s low but close in the red; smallcaps remain under pressure | Stock Market News

Indian stock market: After massive selling in the previous trading session, Indian markets witnessed some buying activity in today’s trade, March 3, attempting to recover after frontline indices recorded their longest monthly losing streak since 1996.

Although the markets began the session in the green, momentum quickly turned negative, and by noon, both frontline indices had lost half a percent. However, strong buying in metals, realty, and IT stocks supported a recovery in the second half of the session, while oil & gas and financial services stocks continued to face pressure on the exchanges.

The Nifty 50 recovered 112 points or 0.52% from the day’s low to end the session with a minor drop of 0.02%, closing at 22,119, while the Sensex also rebounded 302 points or 0.42% from intraday low to end the session with a slight cut of 0.09%, ending at 73,085. The broader markets ended mixed, with the Nifty Midcap 100 index gaining 0.14% to close at 47,984, while the Nifty Smallcap 100 index declined 0.27% to settle at 14,660 points.

Today’s drop marks the ninth consecutive loss for the Nifty 50 and Sensex, with both indices losing over 3% during this period. They recorded their worst intraday performance of 2025 so far on February 28, falling over 1.8% each. 

Investors continue to remain cautious on risky assets amid escalating trade tensions, promoting to reassess their portfolios, with allocations shifting toward safe-haven assets. Donald Trump’s series of announcements on tariffs on goods entering the U.S. is unsettling investors as his trade polices might ignite full blown trade war if affected countries announces impose retaliatory measures.

U.S. President Donald Trump last week indicated that tariffs on Canada and Mexico will come into effect on Tuesday, with the rate of tariffs on Chinese imports also set to rise on the same day.

U.S. Commerce Secretary Howard Lutnick said on Sunday that Trump would decide whether to stick with the 25% level, further creating uncertainty in global markets. These comments were the first indication from Trump’s administration that it may not impose the full threatened level of 25% tariffs, Reuters reported.

On the domestic front, Indian economy grew by 6.2% year-on-year in the third fiscal quarter ended December, rebounding from a seven-quarter low. The growth rate is greater than the revised 5.6% recorded in the July-September quarter, but ongoing global uncertainty has kept investors on edge.

The escalating trade tensions have been prompting overseas investors to withdraw billions of rupees from Indian equities, as they view Indian equities as overvalued compared to global peers. Meanwhile, Trump’s plans for reciprocal tariffs, including those on India, have further weakened investor confidence.

Sectoral Watch: Realty stocks shine, media struggles

Among sectoral indices, the Nifty Realty index emerged as the top sectoral performer, gaining 1.42%. However, the index is still down 30% from its recent peak and has corrected by 24% in the last two months, marking the biggest two-month sell-off in the last five years.

Other sectoral indices, such as Nifty Metal, Nifty IT, Nifty Auto, Nifty Pharma, and Nifty FMCG, all managed to end the session in positive territory, with gains ranging between 0.23% and 1.24%.

On the losing side, Nifty Media stood as the top laggard, declining by 0.83%, followed by Nifty Oil & Gas, Nifty Bank, and Nifty Financial Services, all of which ended the session in the red.

Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, “The market experienced a gradual recovery from its intraday low, driven by improving economic growth, a rebound in consumption expenditure, and healthy expansion in the agricultural sector, which influenced investor sentiment. With valuations approaching oversold levels, domestic indicators suggest potential for a rebound. However, the longevity of this recovery remains uncertain, contingent on easing global trade uncertainties, which currently show limited signs of improvement.”

Technical Outlook

Vatsal Bhuva, Technical Analyst at LKP Securities, said, “On Monday, Nifty found support around 22,000 and managed to close above the crucial 38.2% Fibonacci retracement level of 22,043, derived from the 2022 low of 15,213 to its all-time high of 26,277. The RSI remains in a highly oversold zone at 22 on the daily chart, indicating a possible short-term rebound towards the 400-day EMA at 22,475.”

“However, the broader trend remains bearish, favoring a sell-on-rise approach unless Nifty decisively closes above 22,600. Immediate resistance is at 22,300, while key support stands at 22,000. If this support is breached on a closing basis, the next support lies at 21,800,” he further added.

“The Nifty has formed a bear candle with long shadows on both sides, indicating intraday volatility. The index continues to make lower highs and lower lows on the daily chart, signaling the ongoing downtrend. Key support levels are at 21,800-21,500, which coincide with previous major lows, long-term trendline support, and the 100-week EMA. Holding above this support range is crucial for establishing a base between 21,500 and 22,800, following the sharp decline over the past five months. Short-term resistance is at 22,800-23,000 levels,” said analysts at Bajaj Broking.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.