Stock market today: Fag-end selling drags Sensex, Nifty 50 lower; Reliance, L&T top drags

Stock market today: Indian markets retreated on Monday, March 10, after last week’s strong rebound, which had delivered the best weekly gains for frontline indices in three months. Both frontline indices started today’s session on a flat note but gained momentum in the early hours. 

However, they struggled to sustain the uptrend as the day progressed, with profit booking in heavyweight stocks like Reliance Industries dragging the markets lower, sending the Nifty 50 to end the session with a cut of 0.41% at 22,460, while the Sensex declined 0.29% to settle at 74,115.

The broader markets witnessed even more pain, as the Nifty Midcap 100 index dropped 1.53% to close at 48,440 points. Even stronger pressure was seen in small-cap stocks, with the Nifty Smallcap 100 index tumbling 1.97% to 15,198 points.

Most Asian markets also ended today’s session lower, as China’s consumer price index (CPI) fell at its sharpest pace in 13 months in February, while producer price deflation extended to a 30th straight month, adding to growth concerns from a slowing US economy and escalating global trade tensions.

U.S. markets tumbled last Friday after weak Nonfarm payroll data heightened concerns about an economic slowdown in the world’s largest economy, driving investors toward U.S. Treasuries. 

It appears that the world’s two largest economies are both facing a demand slowdown, and if the trade war between these countries intensifies further, it could have a cascading effect on the global economy.

Apart from weak global cues, a cut in target multiples by global brokerage Goldman Sachs also dented investor sentiment in today’s trade, as the brokerage trimmed its 12-month Nifty target to 25,500 from the previous 27,000.

Goldman retained a ‘Marketweight’ rating on India after downgrading from ‘Overweight’ last October, citing a cyclical slowdown in India’s economic growth and corporate profits. The brokerage expects low-teens earnings growth for Indian companies over the next 12 months.

U.S. Nonfarm payrolls increased by 151,000 jobs in February, coming in lower than estimates. This was the first monthly payroll report capturing President Donald Trump’s policies. The unemployment rate ticked up to 4.1%.

The weaker-than-expected data sent the tech-heavy Nasdaq into correction territory, as it is now 10% off its recent peak. Meanwhile, in a Fox News interview on Sunday, Trump declined to predict whether his tariffs on Canada, Mexico, and China would lead to a U.S. recession.

Amid escalating global trade tensions, India is working to secure a bilateral trade deal with the U.S. after President Donald Trump called out India’s high tariffs on several occasions.

Sectoral Performance: Realty selloff extends; FMCG ends higher

Among the 13 major sectoral indices, 12 closed in the red, with Nifty Realty emerging as the top laggard as the selloff in domestic real estate stocks extended for the third consecutive session. The Nifty Realty index lost 2%, closing at 799.70.

Oil and gas stocks, which had made significant strides last week amid weakening global crude oil prices, came under pressure as the latest data from the world’s two largest economies showed signs of weakness, sending the Nifty Oil & Gas index tumbling 1.90% in today’s trade.

Other sectoral indices, including Nifty PSU Bank, Nifty Auto, Nifty Consumer Durables, Nifty Metal, Nifty Pharma, and Nifty Bank, all ended in the red, with losses ranging between 0.50% and 1.90%. Nifty FMCG was the only index to close in positive territory, gaining 0.22% to end at 52,006 points.

Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, “Global headwinds continue to drag the market sentiment, with the rise in US unemployment rates and tariffs leading to uncertainty, indicating that volatility is here to stay for the near term.”

“The domestic macros are favoring investors to start accumulating the beaten-down stocks with caution in the short term, while the long term appears attractive. A slew of economic indicators this week, US and India CPI data, will be keenly watched by investors for any ease in the current volatility,” he further added. 

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty remained volatile throughout the day, finding resistance at the 21 EMA on the daily chart, which led to a decline towards 22,400. Going forward, 22,400 might continue to act as crucial support, and sentiment is unlikely to weaken unless Nifty falls below this level. On the higher end, resistance is placed at 22,750, above which the bulls might gain increased strength. The overall large-cap sentiment could also strengthen if Nifty moves above 22,750.”

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, said, “Technically, on the daily chart, Nifty formed a shooting star candlestick pattern near the bearish gap hurdle of 22,668-22,720. This suggests 22,720 will act as an immediate hurdle for Nifty, followed by the previous breakdown point of 22,800.”

“On the downside, the 9-Day Simple Moving Average (9-DSMA) is placed near 22,370, serving as immediate support. Until the index sustains above the 22,800 hurdle, traders are advised to buy near support and book profits around the resistance zones mentioned above,” Hrishikesh added. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.