Stock Market Today: Nifty and Sensex End Volatile Session Near Flatline

Market Performance

The Indian stock market experienced sharp fluctuations on March 12, with the Nifty 50 and Sensex oscillating between gains and losses. While heavy selling in the information technology sector initially dragged the indices down, strong performances from key financial stocks, including HDFC Bank, Bajaj Finance, ITC, Tata Motors, and Reliance Industries, helped mitigate the losses. By the end of the session, both indices recovered from their intraday lows, closing with minor declines.

The Nifty 50, which had dipped below the 22,400 mark during the day, ultimately settled at 22,470.50, recording a marginal drop of 0.12%. Similarly, the Sensex fell by 72.56 points (0.10%), closing at 74,029.76. Broader market sentiment remained weak, with a higher number of declining stocks compared to advancing ones.

The midcap and smallcap indices also showed mixed trends, with the Nifty Midcap 100 falling by 0.6%, while the Nifty Smallcap 100 declined by 0.2%. The Nifty IT index took a notable hit, decreasing by 3%, while other sectoral indices, such as Nifty Media, Nifty Realty, and Nifty PSU Banks, registered losses of 1-2%. However, banking, automotive, energy, and pharmaceutical stocks closed in the green.

Market Developments and Global Factors

Investor confidence stayed guarded ahead of the US inflation report, which is expected to influence the Federal Reserve's stance on interest rates. The potential impact of higher tariffs imposed by the US on Canadian steel and aluminium imports further contributed to global trade concerns. The European Union is also preparing to impose counter-tariffs on US goods, raising fears of an extended trade conflict.

Global market trends reflected similar weaknesses, with Wall Street indices declining overnight and Asian markets showing a downward trend. The uncertainty in global trade policies and US economic data weighed on investor sentiment.

Company-Specific Performance

Gainers

• IndusInd Bank secured the position of the top gainer in the Nifty 50 index, climbing over 4% after rebounding from a sharp fall in the previous session.
• HDFC Bank and Kotak Mahindra Bank each gained around 2%, recovering from prior losses.

Sectoral Declines

• IT stocks witnessed a sharp sell-off, with Infosys, Wipro, HCLTech, TCS, and Tech Mahindra registering 2-4% losses.
• Global economic concerns and changing macroeconomic conditions impacted the broader technology sector, which posed risks to revenue growth and valuations.

Index Overview

• Sensex: Closed at 74,029.76, down by 0.10%
• Nifty 50: Closed at 22,470.50, down by 0.12%
• Nifty IT Index: Declined by 3%
• Nifty Midcap 100: Declined by 0.6%
• Nifty Smallcap 100: Declined by 0.2%

Summary

The Indian stock market remained volatile throughout the trading session on March 12, with significant declines in IT stocks counterbalanced by gains in the banking and financial sectors. Global trade tensions, uncertainties surrounding US inflation data, and market corrections in global indices added to investor concerns. Despite an intraday decline, the index managed to recover some losses by the end of the session, reflecting resilience in certain heavyweight stocks.