Stock market today: Sensex, Nifty 50 eke out mild gains, extend winning run to 7th day; tech stocks shine

Stock market today: Indian markets closed a highly volatile session on Tuesday, March 25, with modest gains, extending their winning streak to seven consecutive sessions. Markets opened on a strong note, tracking a sharp overnight rally in global markets, but quickly gave up early gains as weakness in banking, metals, and pharma weighed on the indices. However, a strong uptrend in technology stocks provided support, helping the indices stay in positive territory.

The broader market, meanwhile, slipped into the red after witnessing strong buying interest in recent trading sessions. It was the small-cap stocks that took a heavy beating in trade today.

The Nifty 50 tumbled 201 points from the day's high to end the session with a mild gain of 0.04% at 23,668, while the Sensex wrapped up the session with a gain of 0.07%, plummeting 705 points from the day's high to end at 76,035.

The Nifty Midcap 100 index closed the session with a 1.06% decline, while the Nifty Smallcap 100 index faced even heavier selling pressure, tumbling 1.56%.

Overnight, global markets ended sharply higher following reports that President Donald Trump’s tariffs might be more limited in scope and sector-specific duties may be postponed. On Monday, Trump stated that he may grant "a lot of countries" exemptions on reciprocal tariffs.

Additionally, Trump indicated that auto tariffs were imminent, but not all of the proposed levies would be imposed on April 2, and some countries may receive exemptions, which improved risk-on sentiment.

Meanwhile, Reliance Industries shares ended the session nearly 2% lower after Trump announced a 25% secondary tariff on countries importing oil and gas from Venezuela, effective April 2. Analysts note that the announcement has negatively impacted Reliance, as it is the only Indian company importing Venezuelan crude. However, they highlight that the company has the option to switch to alternative fuels from the spot market.

Sectoral Performance: Consumer durables tumble; tech stocks extend rally

Among the 13 sectoral indices, only two ended the session in the green, with Nifty IT emerging as the top gainer, rallying 1.17% as optimism grew that President Donald Trump may hold back on some of his wide-ranging tariff plans, fueling hopes that the U.S. could avoid an economic slowdown from a trade war.

Nifty Private Bank also ended the session in the green, with a mild gain of 0.07%. On the flip side, Nifty Consumer Durables was the top sectoral loser, dropping 1.93%, followed by Nifty PSU Bank, Nifty Media, Nifty Metal, and Nifty Oil & Gas, all closing with losses between 1.4% and 1.8%.

Pharma stocks also came under selling pressure after Trump said he would announce tariffs on pharmaceutical imports in the near future, sending the Nifty Pharma index tumbling over 1%.

Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Investments, said, "After a six-day recovery rally, the broader market witnessed some profit booking, particularly in small and mid-cap stocks, where premium valuations still exist. On the other hand, the IT sector posted gains, driven by positive global cues stemming from expectations of softer tariffs and a recent correction in valuations."

"In the near term, investor sentiment is expected to be cautious as they await clarity on trade policy between the US and India. Meanwhile, attention is shifting towards the quarterly results, which are anticipated to shed light on the recovery in earnings growth. Favorable indicators, such as expected rate cuts and rupee movements, continue to support the market sentiment, he further added.

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty faced resistance at the previous swing high, leading to a volatile session before closing slightly lower. On the downside, support is observed around 23,300, which is a congestion level, with the 100-EMA also placed near this level. As long as the Nifty remains above 23,300, we anticipate a consolidation phase within a broader range of 23,300 to 23,800. Immediate support is placed at 23,600, and a decisive drop below this level could drive the index toward 23,300. On the upside, resistance is at 23,800, and a breakout above this level may resume the rally."

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.