Indian Benchmark Struggling to Hold Intraday Gains Amid Weak Market Breadth
About 707 stocks are advancing as against 2,095 stocks that are declining, thus indicating a negative market breadth in the broader market.
Market Update at 2:20 PM: In the current trading session, the benchmark indices remained steady, holding midday day gains, with the Sensex surging by 0.2 per cent, while Nifty jumped by 0.3 per cent, as gains in heavyweight information technology and HDFC Bank offset broad-based losses.
On March 25, small and midcap stocks saw a sharp decline, dragging broader market indices into negative territory and ending their six-day winning streak. Investor concerns over the sustainability of the recent rebound, impending reciprocal tariffs announced by US President Trump, and the wait for stronger buying signals from foreign investors contributed to the downturn.
The Nifty Small-Cap index declined by almost 1.35 per cent, while the Nifty Mid-Cap index was down over a per cent during mid-day trade.
Meanwhile, the India VIX was trading near the 13.5 mark and almost remained flat.
Five out of 17 sectors were trading in the green, with Nifty IT (+1.64 per cent) and Nifty per cent (+0.4 per cent) leading the gains and emerging as the top-performing sectors.
Ultratech Cement, Grasim and Trent are among the Top Gainers, while Dr Reddy’s Lab, IndusInd Bank and Coal India are among the top losing stocks from the Nifty 50.
About 707 stocks are advancing as against 2,095 stocks that are declining, thus indicating a negative market breadth in the broader market.
Market Update at 12:15 PM: Indian benchmark indices, which started the session on a positive note, are struggling to hold onto their early gains. Weakness in media and metal stocks is weighing on the market, keeping the indices in positive territory with marginal gains. However, a shift into negative territory appears as market breadth, indicating bearish sentiment.
By midday, the Nifty 50 was trading with modest gains, up 50 points from its previous close, trading above the 23,700 mark with gains of 0.23 per cent. Similarly, the Sensex trading nearly flat with gains of 10 points or 0.03 per cent. The Bank Nifty was mirroring the Nifty 50’s trade activity was up by 0.11 per cent. Meanwhile, the India VIX was trading above the 14 mark, up by 3.4 per cent, indicating increased volatility in the Indian market.
The IT index led sectoral gains following remarks from U.S. President Donald Trump about the possibility of granting tariff exemptions to multiple countries. While Trump's tariff policies are seen as inflationary for the U.S., they pose challenges for IT companies, which generate a significant share of their revenue from the region. Meanwhile, the U.S. treasury secretary stated that nations could sidestep reciprocal tariffs by lowering trade barriers.
Indian financial stocks edged up by 0.4 per cent on Tuesday after the central bank revised its priority sector lending guidelines, expanding the scope for renewable energy financing and increasing loan limits for housing.
By midday, the top contributors to market gains were index heavyweights HDFC Bank (+69.47 pts), Infosys (+25.64 pts) and TCS (+10.5 pts). On the other hand, ICICI Bank (-18.5 pts) and Reliance (-16.51 pts) were trading in negative territory.
On Tuesday, overall market breadth remained weak, as 640 stocks advanced while 2,092 declined. Both the Nifty Mid-cap 100 and Nifty Small-cap 100 indices were in red down by 0.93 per cent and 1.21 per cent, respectively.
On the sectoral front, 3 out of 17 sectors recorded gains, with Information Technology rising 1 per cent. , while Nifty Media (-1.5 per cent) and Nifty Consumer Durables (-1.38 per cent) lost last week's gains and emerging as the top-losing sectors.
Market Update at 10:25 AM: India's benchmark indices started Tuesday on a positive note as concerns over tariffs subsided following U.S. President Donald Trump's statement about potentially granting exemptions to multiple countries on reciprocal tariffs.
At 10:15 a.m., the Nifty 50 was up 0.61 per cent at 23,800, while the Sensex advanced 0.88 per cent to 78,670. On the sectoral front, 7 out of 17 sectors recorded gains, with Information Technology and Finance stocks rising 1 per cent.
On Monday, Trump indicated that auto tariffs were approaching, though not all proposed duties would take effect on April 2, and certain nations might receive exemptions. U.S. markets saw gains overnight, while Asian stocks showed a mixed performance during the session.
Broader markets saw a decline, with small-cap and mid-cap indices decreasing around 0.3 per cent and 0.6 per cent, respectively.
In today’s trade, India VIX is trading above the 14 mark, up by 4.5 per cent, indicating an increase in market volatility.
Nifty has gained 5.6 per cent over the last six sessions, reversing its year-to-date losses. This uptrend is driven by foreign capital inflows and optimism about a rebound in domestic economic activity, prompting investors to accumulate previously underperforming stocks.
About 971 stocks are advancing against 1,719 declining stocks, thus indicating a negative sentiment in the broader market.
Pre-Market Update at 7:45 AM: Indian equity benchmark indices, Sensex and Nifty 50, are set for a positive opening on Tuesday, taking cues from a global market rally. Asian markets traded in the green, while Wall Street saw strong gains, with the S&P 500 closing at its highest level in more than two weeks.
Gift Nifty hovered around the 23,750 mark, reflecting a premium of approximately 63 points over the previous close of Nifty futures. This suggests a potential gap-up opening for Indian stock market indices.
The US stock market closed higher on Monday, driven by indications that the Trump administration could adopt a more cautious stance on tariffs in trade negotiations. The Dow Jones Industrial Average climbed 1.42 per cent to 42,583.32, while the S&P 500 advanced 1.76 per cent to 5,767.57. The Nasdaq ended the session with a 2.27 per cent gain, reaching 18,188.59.
U.S. President Donald Trump stated that new tariffs on automobiles are imminent, though not all proposed levies will take effect on April 2. He hinted that several countries might receive exemptions. Additionally, Trump mentioned that tariffs on aluminum and pharmaceuticals would be introduced soon. In a separate executive order, he declared that any country purchasing oil or gas from Venezuela would face a 25 per cent tariff on trade transactions with the U.S.
Economic activity in the U.S. showed improvement in March, as indicated by S&P Global’s flash U.S. Composite PMI Output Index, which climbed to 53.5 from February’s 51.6. The manufacturing sector, however, witnessed a decline, with the flash manufacturing PMI slipping to 49.8 from 52.7. This was lower than economists’ expectations of 51.7. Meanwhile, the flash services PMI showed a notable rise, increasing to 54.3 from 51.0, contrary to predictions of a drop to 50.8.
The Securities and Exchange Board of India (SEBI) has eased regulations for foreign investors, alternative investment funds, and registered investment advisors. Additionally, the regulatory body is set to review various provisions concerning conflicts of interest and compliance requirements for its officials and members.
The Reserve Bank of India (RBI) has introduced updated guidelines on Priority Sector Lending (PSL) to enhance credit allocation to key economic sectors. Notable amendments include an increase in loan limits for housing under PSL coverage and an expansion of eligibility criteria for loans under the renewable energy category. These changes will be implemented from April 1, 2025.
Minutes from the Bank of Japan’s January meeting revealed that policymakers deliberated on the pace of future interest rate hikes. The discussions followed the central bank’s recent decision to raise short-term interest rates to their highest level in 17 years.
Asian markets saw an upward trend on Tuesday, taking cues from Wall Street’s overnight rally amid optimism over potentially lower-than-expected tariffs from U.S. President Donald Trump. Japan’s Nikkei 225 climbed 1.15 per cent, while the Topix index advanced 0.50 per cent. South Korea’s Kospi edged up 0.49 per cent, and the Kosdaq moved higher by 0.30 per cent. Meanwhile, Hong Kong’s Hang Seng index futures suggested a subdued start.
Brent crude slipped 0.07 per cent to USD 72.97 per barrel following a 2.2 per cent rise last week, while US WTI crude futures edged up 0.03 per cent to USD 68.94.
The dollar index was trading at 103.93, while USD/INR was trading at 85.56.
On Monday, the Indian stock market continued its winning streak for the sixth straight session, with the Nifty 50 closing above the 23,650 mark. The Sensex surged 1,078.87 points (1.40 per cent) to settle at 77,984.38, while the Nifty 50 gained 307.95 points (1.32 per cent) to end at 23,658.35.
On March 24, 2025, foreign institutional investors (FII) bought shares worth Rs 3,055.76 crore, while domestic institutional investors (DII) bought shares worth Rs 98.54 crore.
Stocks that are banned for trading in the F&O segment on March 25, 2025, is Indusind Bank Ltd only.
Disclaimer: The article is for informational purposes only and not investment advice.