Markets open mixed amid global cues; Auto sector gains while banking falls
Equity markets opened on a mixed note Monday morning, with the Sensex opening at 73,427.65 compared to its previous close of 73,198.10 and is currently trading at 73,185.86, down by 12.24 points or 0.02 per cent. Similarly, the Nifty opened at 22,194.55 against its previous close of 22,124.70 and is now at 22,132.10, gaining 7.40 points or 0.03 per cent.
The market sentiment remains cautious following last week’s sharp correction that saw the Nifty drop nearly 3 per cent and the Sensex fall over 2,000 points.
According to Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, “Panic-selling gripped Dalal Street last week, with Nifty nearing the 22,000 mark, dragging down Bank Nifty (-1.30 per cent) and Nifty IT (-7.96 per cent).”
Auto stocks emerged as top gainers in early trade, with M&M leading the charge, up 2.56 per cent following impressive February sales numbers. UltraTech Cement followed with a 2.49 per cent gain, while Wipro, Grasim, and Eicher Motors each rose over 2 per cent.
The banking sector, however, faced selling pressure with IndusInd Bank plummeting 3.72 per cent, making it the top loser on the NSE. Other major losers included Coal India and Reliance Industries, both down 2.69 per cent, followed by ONGC (-1.99 per cent) and Axis Bank (-1.59 per cent).
VLA Ambala, SEBI Registered Research Analyst and Co-Founder of Stock Market Today, noted, “On the technical side, the market remains in the bearish zone, with sell-on-rise being the advisable strategy. However, there are chances of Nifty to enter in the bearish zone.” She added that “Nifty can find support at 22,100, 21,800, or 21,670, while the resistance is expected around 22,250 and 22,300.”
Hardik Matalia, Derivative Analyst at Choice Broking, cautioned, “Nifty has formed a strong bearish candlestick, signalling negative sentiment. The index may face key resistance at 22,300, and a breakout above this level could drive further gains towards 22,530 and 22,670.” He further advised traders “to exercise caution and wait for confirmation of price action at key levels before initiating fresh positions.”
Shrikant Chouhan, Head of Equity Research at Kotak Securities, stated, “We view the current market condition as weak but oversold, hence the strong possibility of a pullback rally from the current levels is not ruled out.” He added that “22,200/73500 would be the key level to watch out. Below this, the market could slip to 22,000-21,800/73000-72500.”
Akshay Chinchalkar, Head of Research at Axis Securities, pointed out, “The Nifty plunged 1.9 per cent on Friday which marked eight straight days of declines; the drop was the largest such decline since Oct 3rd.” He added that “22100 remains important support while a break could see the market test the next vital zone that extends all the way from here till 21700.”
Global factors continue to influence market sentiment, with concerns over potential US tariffs looming large. “Uncertainty looms with Trump tariffs and geopolitical tensions,” noted Tapse. The US is set to impose tariffs on Canada, Mexico, and China starting tomorrow, which could impact global trade dynamics.
On the positive side, February’s GST revenue rose by 9.1 per cent to ₹1.84 lakh crore, indicating robust economic activity. India’s Q3 GDP growth came in at 6.2 per cent, in line with expectations, while the government raised its FY25 GDP growth forecast to 6.5 per cent from 6.4 per cent.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, views the current correction as an opportunity: “The main triggers for the sustained FII selling in India have been the high valuations and the attractive US bond yields. These important macros are undergoing a slow shift. Largecap valuations are now fair and in segments like financials attractive.”
Institutional flows continue to play a crucial role, with Foreign Institutional Investors (FIIs) selling equities worth ₹11,639 crore on March 2, while Domestic Institutional Investors (DIIs) bought equities worth ₹12,308.6 crore.
In the commodities space, both gold and crude oil faced pressure last week. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, noted, “Gold and silver faced a sharp sell-off last week. Gold’s impressive eight-week rally came to an end as it hit a three-week low.” Gold prices declined 2 per cent to $2,860 per ounce.
Crude oil also showed high volatility, slipping to 2-month lows amid a rebound in the dollar index and uncertainty in global financial markets. Brent crude fell 1 per cent to below $73 per barrel last week.
Looking ahead, market participants will closely watch the US jobs report due on Friday, which could set the market’s direction. Additionally, rising heat waves might benefit air conditioning stocks, while the upcoming wedding season could provide a boost to discretionary spending stocks.
