Stock Markets Remain Volatile: Sensex, Nifty Edge Higher Amid Sectoral Churn

Highlights

• Nifty struggles below 22,550 as banking and IT stocks weigh on sentiment.
• Smallcap index outperforms, gaining up to 1% intraday.
• Reliance Industries, Bajaj Auto, and Nestlé among top gainers.
• IndusInd Bank, Infosys, and NTPC lead the laggards.
• Global trade uncertainties and foreign fund outflows add to market caution.

Indian Stock Market Trends Amid Mixed Global Sentiment

Indian equity markets experienced volatile trading on Friday, with benchmark indices oscillating between gains and losses due to profit booking in banking, IT, and FMCG stocks. Despite this, select stocks in auto, metals, oil & gas, and capital goods helped support the market.

As of 12:15 PM, the BSE Sensex was trading 67.31 points lower (0.09%) at 74,272.78, while the Nifty 50 edged down 11.80 points (0.05%) to 22,532.90. While the large-cap stocks struggled for direction, broader markets outperformed, with the BSE Smallcap Index rising 1.5% and the BSE Midcap Index gaining 0.5%.

Sectoral Performance: Mixed Trends Across Indices

The market saw sectoral rotation, with buying interest in auto, metals, oil & gas, and energy stocks, while IT, banking, FMCG, and power stocks faced selling pressure.

Gainers:

• Nifty Oil & Gas, Auto, and Metals indices saw strong demand, boosted by Reliance Industries, Tata Steel, and Bajaj Auto.
• Smallcap stocks continued their bullish momentum, indicating strong domestic investor confidence.

Laggards:

• Nifty IT, Nifty FMCG, and Nifty Bank declined by 0.3%-0.5% amid profit booking.
• Consumer Durables, Power, and Realty stocks also underperformed.

Market breadth remained positive, with 2,319 stocks advancing, 1,133 declining, and 128 unchanged on the BSE.

Global Factors Impacting Market Sentiment

Indian equities mirrored the cautious sentiment seen in global markets, where concerns over US trade policies, rising inflation, and foreign institutional investor (FII) outflows added to uncertainty.

• US Tariff Uncertainty: Markets reacted negatively to US President Donald Trump’s decision to delay tariffs on Canada and Mexico until April 2, extending trade policy concerns.
• Wall Street Sell-Off: The Dow Jones Industrial Average dropped 406 points (-1%), while the S&P 500 and Nasdaq Composite declined 1.3% and 1.8%, respectively, as investors sought clarity on trade measures.
• Foreign Fund Outflows: FIIs continued to reduce exposure to emerging markets, impacting Indian equities.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated:
“Trump’s decision to delay tariffs signals a preference for negotiations over high tariffs. However, the long-term implications of these policies remain unclear.”

Meanwhile, Canada and China imposed retaliatory tariffs, while Mexico is expected to announce its trade response over the weekend, adding further pressure on global markets.

Top Gainers & Losers in Nifty 50

Gainers:

• Bajaj Auto
• Axis Bank
• Grasim Industries
• Eicher Motors

Losers:

• IndusInd Bank
• Infosys
• NTPC
• Shriram Finance

Technical Analysis: Key Levels to Watch for Nifty 50

Anand James, Chief Market Strategist at Geojit Financial Services, provided insights into market trends:

• Key Resistance Level: 22,513 remains a crucial resistance point.
• Buying Opportunity: Dips to the 22,470-22,400 range could be an entry point for investors.
• Breakdown Risk: If Nifty falls below 22,322, the market could reassess its 23,000 target outlook.

Despite the near-term volatility, broader market participation remains strong, particularly in smallcap and midcap stocks.

Will Nifty Cross 23,000? Market Outlook for the Coming Weeks

While short-term volatility persists, market analysts remain optimistic about long-term growth prospects.

Factors Supporting a Bullish Outlook:

• Domestic demand remains robust, supporting key sectors like auto, infrastructure, and energy.
• Strong corporate earnings have bolstered investor confidence.
• India’s economic fundamentals remain resilient, despite global challenges.

However, market sentiment remains cautious due to global trade disruptions, inflation concerns, and continued foreign investor exits.

Investment Strategy: What Should Traders and Investors Do?

• Short-term traders should monitor technical levels closely and wait for dips before making fresh positions.
• Long-term investors can continue to accumulate quality stocks in auto, energy, and smallcap sectors, which have shown strong resilience.
• Keep an eye on foreign fund flows and US trade developments, as these will significantly impact market direction.

As the markets approach key resistance levels, the upcoming sessions will be crucial in determining whether Nifty can sustain its upward momentum and test 23,000 in the near future.