Indian Shares End Flat Amid Tariff Concerns and Fluctuations

Indian shares ended the day on a flat note as cautious sentiment prevailed due to U.S. tariffs. Analysts downgraded several IT stocks, while IndusInd Bank saw gains. Investor focus may shift to upcoming U.S. inflation data revealing Fed's rate trajectory.

Date: 12-03-2025

AI Rating: 5

The report highlights fluctuating Indian share prices, reflecting overall market negativity largely due to external factors such as U.S. President Donald Trump's tariffs on steel and aluminum imports, along with the European Union's counter-tariffs. The benchmark Sensex and the NSE Nifty both saw minor declines of 0.10% and 0.12%, respectively, thereby indicating sluggish performance.

**Market Performance Analysis**
The benchmark 30-share Sensex dropped 72.56 points to 74,029.76, while the broader NSE Nifty index decreased by 27.40 points to 22,470.50. This trend was echoed in mid-cap and small-cap indexes as they fell by 0.6% and 0.5%. The negative market breadth, with 2,490 shares declining against 1,494 advancing, suggests pervasive weakness among stock performances.

**Sector-Specific Movements**
IT stocks experienced heavy selling pressure, notably TCS, Tech Mahindra, Wipro, and Infosys, which saw declines of 2-4% following downgrades by analysts. This erosion in one of the key sectors could dampen investor sentiment towards IT stocks and signal potential volatility moving forward.

Conversely, several stocks flourished, with prominent gainers such as IndusInd Bank (↑ 4.4%) and others like ITC, Bajaj Finance, and Tata Motors showing gains of 2-3%. These companies might attract investors looking for stability in uncertain times. Additionally, specific engagements like Bharti Airtel’s deal with SpaceX to introduce Starlink services may bring future prospects for the telecommunications sector.

**Outlook**
Overall, the cautious undertone from U.S. tariffs combined with sector pressures may influence investor strategies, as attention turns to the forthcoming U.S. consumer inflation data for indications on the Federal Reserve's interest rate decisions.

Stocks: TCS INFY TECHM WIPRO IBN ITC BFIN KMB TATA