Benchmark indices Nifty and Sensex closed lower on March 28, wrapping up FY25 on a weak note, as IT and auto stocks extended their slide for a second straight session, rattled by concerns over Trump’s tariffs. Despite a strong showing from FMCG stocks, the broader market struggled to regain momentum.
At close, the Sensex was down 191.51 points or 0.25 percent at 77,414.92, and the Nifty was down 72.60 points or 0.31 percent at 23,519.35. About 1454 shares advanced, 2399 shares declined, and 116 shares unchanged.
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"Auto tariff announcement comes ahead of the highly anticipated reciprocal tariff announcement on April 2nd. Recent commentary has suggested the U.S. administration could take a more lenient approach when applying reciprocal tariffs, perhaps allowing for negotiations. However, the outcomes remain uncertain," Devarsh Vakil, Head of Prime Research at HDFC Securities, said.
Aishvarya Dadheech of Fident Asset Management said this seems like a natural pause to an overbought phase rather than a reaction to tariff uncertainty. He said that there are a host of positives to be taken from March such as a weaker dollar index, Rupee appreciation, and reduced FII outflows.
The broader market fell in today's session, with the Nifty Midcap 100 and Smallcap 100 indices slipping 0.3 percent and 0.15 percent, respectively. Despite the sharp correction since September, analysts remain wary of high valuations and caution that further downside risks persist.
Among sectors, Nifty FMCG was the lone gainer on March 28, ending 0.6 percent higher. On the other hand, Nifty Bank and PSU Bank also edged higher, up just before the close, pared all gains to end lower by up to 0.5 percent. Weakness persisted in Nifty IT, Auto, and Pharma, with all three indices slipping around 1 percent each. Investor sentiment remained fragile amid growing uncertainty over Trump's proposed reciprocal tariffs, keeping markets on edge.
After a sharp 7 percent decline, Tata Motors’ stock saw a slight rebound, rising 1 percent, a day after Trump imposed a 25 percent tariff on imported cars. Despite the recovery, analysts view this as a major setback for its luxury arm, Jaguar Land Rover, which derives 23 percent of its revenue from the US market.
Shares of Asia's oldest bourse BSE rallied a whopping 16 percent on March 28, after its competitor National Stock Exchange Ltd. (NSE) decided to defer its plan on shifting the weekly, monthly, and quarterly derivatives expiry day to Monday, from Thursday. NSE's move to defer its plan to switch expiry days came after the markets regulator Securities and Exchange Board of India (SEBI) released a consultation paper, proposing that the expiry day could be on Tuesday or Thursday.
Shares of ITC Hotels surged by as much as 6 percent, reaching a new all-time high of Rs 206 per share after global brokerage firm Macquarie initiated coverage with an "outperform" rating and set a target price of Rs 230 per share, indicating a potential 11 percent upside from current levels. Since its listing on January 29 following the demerger and spin-off from ITC, shares of ITC Hotels have gained 16 percent. Notably, all three analysts tracking the stock have issued a "buy" recommendation.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, stated that Nifty staying above 23,400 and Sensex above 77,100 would support a bullish structure. "On the upside, 23,750–23,800 for Nifty and 78,000–78,200 for Sensex will act as key resistance levels. However, a break below 23,400 or 77,100 could shift sentiment to bearish," he added.
Tata Consumer Products, ONGC, Apollo Hospitals, Kotak Mahindra Bank, and ICICI Bank were the top gainers on the Nifty. IndusInd Bank, Wipro, Cipla, Shriram Finance and M&M were the major laggards on the index.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.