Stock market opens in red amid global uncertainty, April 2 tariff risks loom large

Mumbai (Maharashtra) [India], March 21 (ANI): The Indian stock market opened in negative territory on Friday After a record-breaking close on Thursday, weighed down by global uncertainties and looming broad-based reciprocal tariffs set to take effect on April 2.
The BSE Sensex slipped 69.91 points, opening at 76,278.16, while the NSE Nifty declined 22.40 points, starting at 23,168.25. Despite the negative opening, market breadth remained mixed, with 31 Nifty companies advancing and 19 declining.
Among the top gainers were Bajaj Finance, Nestle India, Shriram Finance, ONGC, and Maruti, while the IT sector led the decline, with Infosys, HCL Technologies, TCS, Wipro, and Tech Mahindra among the biggest losers.
Ajay Bagga, a banking and marketing expert, highlighted growing investor concerns over economic uncertainty. He noted that while central banks worldwide--ranging from Indonesia and Brazil to the Bank of England and the U.S. Federal Reserve--have provided their outlooks this week, they have failed to offer clarity on key economic risks.
"The world is flying blind into April 2 broad-based reciprocal tariffs," Bagga warned, adding that volatility, caution, and capital preservation remain the dominant themes.
While geopolitical risks remain subdued, Bagga highlighted potential unintended consequences, particularly as Russia-U.S. talks have failed to secure a substantial ceasefire.
The renewed Israel-Hamas conflict and France advising its citizens to exit Iran have further fueled speculation of escalating tensions in the Middle East.
The IT sector faced additional pressure after Accenture's earnings report raised concerns about the industry's growth prospects.
With Accenture's significant exposure to US government contracts, the firm's subdued outlook has sparked worries for Indian IT services companies.
On a positive note, Indian markets have seen strong Foreign Portfolio Investor (FPI) inflows in two of the last three trading sessions. Bagga emphasised that if this trend sustains and domestic capital sitting on the sidelines gets deployed, Indian markets could resume their upward trajectory toward new record highs.
However, he cautioned that uncertainty surrounding April 2 remains difficult to price or hedge against, with global risks still unfolding.
Bagga said, "For now, we remain cautiously optimistic but very wary of surprises on April 2. Risks are being priced in, but uncertainty remains a challenge for investors in a potential 'lose-lose' trade war scenario." (ANI)