Synopsis
On March 12, Indian stock markets saw considerable fluctuations, with benchmark indices closing nearly unchanged. IT stocks faced heavy selling pressure, while private banks provided some support. The Sensex and Nifty both experienced declines, marking continued losses in the market.Key Takeaways
- Sensex closed down 73 points at 74,030.
- Nifty ended 27 points lower at 22,470.
- IT stocks saw significant declines, particularly Infosys.
- IndusInd Bank was the top gainer, rising nearly 5 percent.
- Market breadth was weak with 2,500 stocks declining.
Mumbai, March 12 (NationPress) Indian stock markets experienced significant volatility on Wednesday, with the key indices concluding the session nearly unchanged.
Substantial selling pressure in IT stocks negatively impacted the market, while gains in private banking shares helped mitigate the decline.
The Sensex kicked off the day positively, opening approximately 170 points higher at 74,270 and reaching an intra-day peak of 74,392.
However, these gains were fleeting as the index fell into negative territory, dropping to a low of 73,598, nearly 800 points down from the day's high.
Ultimately, the Sensex finished with a loss of 73 points, or 0.1 percent, at 74,030, marking its fourth consecutive day of losses.
The Nifty mirrored this trend, reaching a high of 22,577 before descending to a low of 22,330. It concluded the day 27 points lower at 22,470.
Among the Sensex stocks, IndusInd Bank stood out as the top gainer, climbing nearly 5 percent after its CEO and group chairman addressed investor concerns.
Tata Motors, Kotak Mahindra Bank, Bajaj Finance, ITC, HDFC Bank, and Sun Pharma also posted gains ranging from 1 to 3 percent.
Conversely, IT stocks exerted downward pressure on the market, with Infosys plummeting over 4 percent. Tech Mahindra, Nestle India, HCL Technologies, and TCS also ended lower, with declines between 1 and 3 percent.
Other significant losers included Asian Paints, Axis Bank, Hindustan Unilever, Zomato, and SBI.
The broader market also faced declines, as the BSE MidCap and SmallCap indices fell by 0.5 percent each.
Market breadth was weak, with nearly 2,500 stocks1,500 advancing stocks on the BSE.
Sector-wise, the IT index suffered the most, dropping over 3 percent amid fears of a potential US recession and stock downgrades by Morgan Stanley and Motilal Oswal Financial Services.
The real estate sector also experienced losses of 1.7 percent, while the metal sector fell by 0.5 percent. In contrast, private banks outperformed, with the Nifty Private Bank index rising 0.7 percent.
Meanwhile, the Indian rupee finished flat at 87.32 per dollar, compared to its previous close of 87.21.
According to Sundar Kewat from Ashika Institutional Equity, the initial selloff was spurred by concerns regarding global trade policies following US President Donald Trump's warning about potentially doubling tariffs on Canadian steel and aluminium, which affected investor sentiment.
Sector-wise, weaknesses were noted in IT, real estate, and metals, while strength was observed in private banks, automobiles, and financial services, he added.
