Benchmark indices Nifty and Sensex snapped their 7-day gaining streak on March 26 after pharma stocks tumbled on tariff concerns. On Tuesday, the indices witnessed a choppy session as sharp declines in metal, PSU bank, and oil & gas stocks offset gains. Profit booking weighed on sentiment, though resilience in the IT sector helped markets extend the winning streak to seven sessions.
At about 9:50 am, the Sensex was down 183.23 points or 0.23 percent at 77,833.96, and the Nifty was down 37.40 points or 0.16 percent at 23,631.25. About 1194 shares advanced, 1853 shares declined, and 134 shares unchanged.
In US, consumer confidence plunged to the lowest level in more than four years in March, with households fearing a recession in the future and higher inflation because of tariffs. Asian stocks posted modest gains Wednesday as investors search for a clear direction amid weaker US consumer confidence and a late rally in US equities.
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"Investor uncertainty remains high over US reciprocal tariffs. While there is hope that Trump may scale back some planned tariffs on India, fresh threats of 25 percent 'secondary tariffs' on countries like India and China for importing Venezuelan oil have added to concerns," Siddhartha Khemka, Head of Research at Motilal Oswal, said. Despite this, he suggests that markets are expected to maintain a gradual uptrend, supported by FII inflows, and a strong rupee. The total FII buy figure of Rs 19,136 crores in the last four trading days indicates that this positive trend is likely to continue.
The broader market continued displaying weak trends with the Nifty Midcap 100 falling 0.2 percent and Smallcap 100 falling 0.6 percent. Despite the recent surge, a host of analysts remain cautious on this space due to persistent valuation concerns and the upcoming earnings season will offer further clarity on their trajectory.
12 out of 13 sectors traded in the red. IT, Metal, Pharma and PSU Bank were the major laggards, crashing up to 0.8 percent. Consumer Durables, Energy and Auto also traded lower up to 0.4 percent. FMCG index was the sole gainer, rising 0.2 percent in the morning.
Attention is shifting towards the quarterly results, which are anticipated to shed light on the recovery in earnings growth. Favourable indicators, such as expected rate cuts and rupee movements, continue to support the market sentiment in the current scenario.
Also read: Asian stocks seek new direction after weak US data
Shares of Stylam Industries gained as much as 6 percent on Wednesday, March 26, after the government imposed an anti-dumping duty on Acrylic Solid Surface imports from China. The company, which had petitioned for the duty, holds a dominant 70-80 percent share of India’s total production in this segment.
NCC shares rallied 4 percent after it announced that it has secured two advance work orders worth Rs 10,804.6 crore from Bharat Sanchar Nigam for designing, supplying, constructing, and maintaining the middle-mile network of BharatNet in the Uttarakhand, Madhya Pradesh, DNH, and DD telecom circles.
Waaree Renewables' shares rose in early trade on March 26 after the company secured a Letter of Award (LOA) for a solar power project worth Rs 232 crore. The company announced that it has received the LOA for engineering, procurement, and construction (EPC) work on a ground-mounted solar power project with a capacity of 170 MW AC/255 MW DC. The contract also includes operation and maintenance (O&M) on a turnkey basis.
Read more: Zomato, Jio Financial Services to enter Nifty 50 tomorrow; Britannia Industries, BPCL excluded
From a technical standpoint, "The Nifty encountered resistance at its previous swing high, sparking a volatile session before settling slightly lower. Key support is seen around 23,300, a congestion zone reinforced by the 100-EMA," noted Rupak De, Senior Technical Analyst at LKP Securities. He added that as long as the index holds above 23,300, it is likely to consolidate within a broader range of 23,300 to 23,800. Immediate support lies at 23,600, and a decisive break below this level could push the index toward 23,300. On the upside, a breakout above 23,800 may reignite the rally.
For Bank Nifty, "The support is placed at 51,100, with an additional cushion at 50,800. The resistance remains at 52,100, which needs to be breached for further upside. A minor pullback would be healthy for the index’s future moves, which may pave the way for the next leg of the uptrend," Om Mehra, Technical Analyst at SAMCO Securities said.
IndusInd Bank, Bharti Airtel, Power Grid Corp, Bajaj Finserv, and BPCL were the top gainers on the Nifty. Axis Bank, Shriram Finance, L&T, Asian Paints, and Kotak Mahindra Bank were the major laggards.
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