Midday Market Update: Nifty 50 Slips Below 200-DEMA as IT Stocks Drag, Volatility Rises

On Tuesday, overall market breadth remained positive, as 1,635 stocks advanced while 1,054 declined.

Market Update at 12:15 PM: Indian benchmark indices traded lower with great losses on Tuesday, dragged by IT stocks as uncertainty over U.S. reciprocal tariffs that are to be announced tomorrow made investors cautious.

By midday, the Nifty 50 was trading with losses, down 333 points from its previous close, trading above the 23,000 mark with losses of 1.4 per cent. Similarly, the Sensex trading is trading lower with a loss of 1,267 points or 1.67 per cent. The Bank Nifty mirrored the intraday performance of benchmark indices and is down by 1.78 per cent. Meanwhile, the India VIX was trading near the 14 mark, up by 9 per cent, indicating highly increased volatility in the Indian market.

By midday, the top gaining stocks that lifted Nifty 50 higher are Trent (+9.43 pts), IndusInd Bank (+3.71 pts) and Bajaj Auto (+2.03 pts). On the other hand, ICICI Bank (-32.3 pts), Infosys (-33.52 pts), and HDFC Bank (-69.66 pts) were dragging the index down.

Nifty 50 has crossed below 200-DEMA today; the index is still in negative territory, according to the DEMA analysis.

On Tuesday, overall market breadth remained positive, as 1,635 stocks advanced while 1,054 declined. The Nifty Mid-cap 100 and Nifty Small-cap 100 indices were trading marginally lower, both down by 0.8 per cent.

On the sectoral front, 2 out of 17 sectors recorded gains, with Nifty Media rising over 1 per cent, while Nifty IT (-2 per cent) and Nifty Realty (-3 per cent) were the top-losing sectors. 

Market Update at 10:20 PM: Indian equity benchmarks edged lower on Tuesday, influenced by declines in information technology stocks, as investors remained cautious following U.S. President Donald Trump's announcement on reciprocal tariffs.

The NSE Nifty 50 declined by 0.25 per cent to 23,468.8, while the BSE Sensex was down 0.4 per cent at 77,103.74 as of 10:08 a.m. IST. Markets remained closed on Monday due to a local holiday.

Investor sentiment was impacted by concerns over potential U.S. tariff measures and their economic implications.

Technology stocks, which derive a substantial portion of their revenue from the U.S., fell 1.8 per cent. The IT sector had already lost 15 per cent in the March quarter, dragging the Nifty 50 down by 0.5 per cent. According to experts it is noted that the fiscal 2026 revenue outlook for IT remains uncertain, with further downside risks to earnings.

Apart from IT and financials, which declined by 0.7 per cent, seven of the 11 major sectors recorded gains. Auto stocks led sectoral advances with a 1 per cent increase. Broader indices, including Small-Cap and Mid-Cap stocks, posted modest gains of 0.2 per cent each.

Among individual stocks, Vodafone Idea surged 10 per cent after the Indian government decided to increase its stake in the telecom company to approximately 48.99 per cent from 22.6 per cent by converting outstanding spectrum dues into equity.

About 1,796 stocks are advancing against 885 declining stocks, thus indicating a positive sentiment in the broader market.

Pre-Market Update at 7:20 AM: Indian equity benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday, influenced by mixed global trends and concerns over Donald Trump’s proposed reciprocal tariffs. While Asian markets traded in positive territory, US indices closed on a mixed note, with the S&P 500 and Nasdaq Composite recording their weakest quarterly performance since 2022.

Gift Nifty was hovering near 23,455, trading about 182 points lower than the previous close of Nifty futures. This suggests a likely gap-down opening for the Indian stock market indices.

The US stock market had a mixed close on Monday as investors remained uncertain about former President Donald Trump’s economic policies. The Dow Jones Industrial Average rose by 417.86 points (1 per cent) to reach 42,001.76, while the S&P 500 advanced 30.91 points (0.55 per cent) to settle at 5,611.85. In contrast, the Nasdaq Composite declined by 23.70 points (0.14 per cent) to end at 17,299.29.

John Williams, President of the New York Federal Reserve, stated that he could not anticipate when the US central bank might adjust interest rates. He emphasised that maintaining the current rate for an extended period would allow policymakers to analyse economic data before making any decisions.

The Kremlin acknowledged ongoing discussions between Russia and the United States regarding potential steps toward a peace settlement in Ukraine and efforts to strengthen bilateral relations. Meanwhile, Donald Trump expressed disappointment with Vladimir Putin but noted that progress was being made gradually.

The Israeli military reported conducting an airstrike in Beirut’s southern suburbs, targeting a Hezbollah member. According to the army, the individual had recently coordinated with Hamas operatives and played a role in planning an imminent attack on Israeli civilians.

A survey by the Bank of Japan (BOJ) revealed a decline in business confidence among major Japanese manufacturers in the first quarter of the year. The headline index dropped to 12 in March, down from 14 in December, aligning with market expectations.

Asian markets saw an upswing on Tuesday, driven by positive momentum from Wall Street’s overnight rally. Japan’s Nikkei rebounded 1 per cent after touching an eight-month low in the prior session, while the Topix advanced 1.34 per cent. South Korea’s Kospi climbed 1.03 per cent, with the Kosdaq following suit, gaining 1.12 per cent. Meanwhile, futures for Hong Kong’s Hang Seng index signaled a stronger opening.

Brent crude slipped 0.20 per cent to USD 74.83 per barrel, while US WTI crude futures edged up 0.51 per cent to USD 71.28.

The dollar index, which measures the U.S. currency against a group of major peers, eased by 0.04 per cent to 103.82. Its recent strength was driven by expectations of new tariffs, while USD/INR was trading at 85.45.

In the first week of the new financial year 2025-26, investors will keep an eye on key market factors such as Donald Trump’s reciprocal tariff policies, foreign fund inflows, domestic and global economic indicators, auto sales data, and broader international market trends.

The Indian stock market remained closed on Monday, March 31, in observance of Eid-ul-Fitr. On Friday, markets declined as investors booked profits amid weak global sentiment. The Sensex dropped by 191.51 points (0.25 per cent) to settle at 77,414.92, while the Nifty 50 slipped 72.60 points (0.31 per cent) to close at 23,519.35.

On March 28, 2025, foreign institutional investors (FII) sold shares worth Rs 4,352.82 crore, the highest buying since September 2024, while domestic institutional investors (DII) bought shares worth Rs 7,646.49 crore.

There are not any stocks banned for trading in the F&O segment on April 01, 2025.

Disclaimer: The article is for informational purposes only and not investment advice.