The Indian stock market benchmarks, Nifty 50 and Sensex, halted their three-day winning spree on Tuesday, March 26, succumbing to weak global cues and a lack of fresh triggers. Investors displayed diminished risk appetite, with uncertainty looming over the timing of interest rate cuts by the Federal Reserve. The truncated trading week, with only three sessions, contributed to reduced trading volumes, hinting at potential market direction ambiguity.
Sensex commenced the day at 72,396.97, marking a decline from the previous close of 72,831.94. Throughout the session, the 30-share index remained in negative territory, ultimately concluding at 72,470.30, down by 362 points or 0.50%. Notably, 20 stocks within the Sensex index closed in the red, with Power Grid, Bharti Airtel, and Wipro emerging as the top losers.
Similarly, the Nifty 50 opened at 21,947.90 against the preceding close of 22,096.75, closing with a loss of 92 points or 0.42% at 22,004.70. Despite this downturn, the midcap segment experienced positive traction, with the BSE Midcap index rising by 0.71%, juxtaposed with a marginal dip of 0.11% in the Smallcap index.
In intraday trade on BSE, 145 stocks including Colgate Palmolive, DMart, IndiGo, Pidilite Industries, Siemens, and Zomato surged to attain fresh 52-week highs, underscoring pockets of strength within the market. Conversely, 102 stocks, including Hindustan Unilever, AAVAS Financiers, Alkyl Amines Chemicals, Delta Corp, GMM Pfaudler, and IIFL Finance, hit their fresh 52-week lows, indicative of broader market challenges.
Top Performers and Laggards
Among the top gainers in the Nifty 50 index were Bajaj Finance, Hindalco Industries, and Adani Ports and Special Economic Zone, which closed up by 2.43%, 2.22%, and 1.83%, respectively. Conversely, Bharti Airtel, Power Grid, and Eicher Motors emerged as the top losers in the Nifty 50 index, registering declines of 1.97%, 1.90%, and 1.74%, respectively.
Sectoral Dynamics
Nifty Media stood out as the top loser among sectoral indices, experiencing a decline of 1.66%. Meanwhile, Nifty Bank and the Private Bank index witnessed falls of 0.56% and 0.50%, respectively. In contrast, the PSU Bank index recorded a modest rise of 0.10%. On the positive side, Nifty Realty surged by 1.57%, followed by Nifty Oil & Gas, which saw a gain of 0.73%.
Expert Insights
Vinod Nair, Head of Research at Geojit Financial Services, commented on the prevailing market conditions, noting that while key data releases such as US GDP and inflation might offer insights into future rate cut trajectories, the truncated trading week, reduced volumes, and monthly expiry could contribute to heightened volatility.
Nair also observed that midcaps had been performing well following a period of consolidation, whereas the IT sector continued to face challenges amid subdued global IT spending forecasts.
Technical Analysis
Rupak De, Senior Technical Analyst at LKP Securities, provided technical analysis, highlighting that although the Nifty remained sideways during the session, the overall short-term trend remained positive as the index closed above critical moving averages on the daily chart.
De outlined support levels at 21,840 for the short term, below which weakness could manifest, while resistance was identified at 22,240-22,300. This technical analysis provides traders with valuable insights into potential entry and exit points based on market dynamics.
In summary, the Indian stock market experienced a pullback amid weak global cues and a dearth of fresh triggers. Despite this, certain sectors showcased resilience, while others faced notable challenges. As experts and analysts weigh in on market dynamics, traders and investors navigate through uncertain terrain, leveraging technical insights and fundamental analysis to make informed decisions in the ever-evolving financial landscape.
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