Markets cut losses: Sensex recovers 350 pts from day's low, Nifty above 22,450; Bank Nifty under pressure

Laggards on the Nifty included IndusInd Bank, Infosys, Bajaj Finserv, Wipro and Tech Mahindra.

The Nifty and Sensex remained in the red but clawed back some losses as the session progressed. A steep decline in IT and banking stocks kept investors wary, while global risk aversion deepened after President Donald Trump refrained from ruling out a recession amid escalating trade tensions.

At about 11:50 am, the Sensex was down 173.48 points or 0.23 percent at 73,941.69, and the Nifty was down 23.00 points or 0.10 percent at 22,437.30. About 1,118 shares advanced, 2,317 shares declined, and 101 shares unchanged.

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The broader market saw mixed trends, with midcaps holding steady while smallcaps extended losses, slipping 0.7 percent but recovering slightly from the day’s lows. The mid-cap index, down over a percent in the morning, came out of the woods to edge higher (0.4%). Both are down over 24 percent and 27 percent from their peaks, yet analysts remain wary of valuations, warning that further downside may be ahead.

"A significant consequence of the ongoing market correction is that India is now outperforming the US. During the last month, while S&P 500 is down 7.5 percent Nifty is down only 2.7 percent. More importantly, the dollar index is down from 109.3 when Trump assumed the presidency to 103.71 now. If this trend continues it will be good for emerging markets like India. Capital outflows from India will decline," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

Also read: Brokerages say IndusInd Bank 'lost credibility', downgrade shares on discrepancies in derivatives portfolio

"President Trump’s flip-flop tariff policy and the high uncertainty that it has triggered has started impacting US stock markets: S&P 500 & Nasdaq declining by 2.6 percent and 4 percent respectively yesterday is the market’s response to Trump’s tariffs and the possibility of US recession by the year-end. We will have to wait and watch how the situation develops," he added.

The Nifty IT index led the sectoral slump, falling 1.47 percent as heavyweight stocks like TCS, Wipro, and Infosys came under pressure amid weak global cues. Infosys and Wipro ranked among the top losers on the Nifty 50, while the IT index extended its losing streak to a fourth straight session, slipping over 1.5 percent.

Read more: Market fall, volatility hits HUFs, brokers, financial institutions harder than FIIs as assets see steep erosion

Banking and auto stocks also struggled, with Nifty Bank down 0.7 percent and Nifty Auto declining 0.6 percent. On the flip side, FMCG, infrastructure, oil & gas, metal, and pharma stocks saw modest gains, rising between 0.4 and 0.5 percent. Realty index was up over 2 percent, snapping its three-day fall.

IndusInd Bank shares nosedived 21 percent to hit the lowest levels in 5 years after the bank reported discrepancies in its derivative portfolio. During an internal review of processes relating to parts of its derivatives portfolio, IndusInd Bank has estimated an adverse impact of 2.35 percent on its net worth as a result of some discrepancies in these account balances, a company filing said on March 10.

Shares of Bharat Electronics Ltd (BEL), a key defence PSU, gained over 2 percent after bagging fresh orders worth Rs 843 crore, pushing its total order inflows for FY25 to Rs 14,567 crore. The new contracts span RF seekers, radar upgrades, vessel and air traffic management systems, electro-optic repair facilities, spares, and services.

Mahindra & Mahindra (M&M) shares dropped over 2 percent, continuing their recent decline as investors reacted to Maharashtra’s proposal to hike motor tax on high-end electric vehicles. The state’s Finance Minister, Ajit Pawar, has suggested raising the tax to 6 percent for EVs priced above Rs 30 lakh, a move expected to bring in an additional Rs 170 crore.

"Yesterday, we expected the market to decline toward 22,245, with 22,470 as a key level to watch. The drop was halted near 22,470, mainly because the downward momentum kicked in late. Today’s session opened lower as the market attempts to reach the earlier target. However, if the 22,300–22,350 zone holds, a rebound could be on the cards. On the other hand, failing to break above 22,520 on the way up or slipping below 22,245 could trigger a deeper fall toward 21,720," Anand James, Chief Market Strategist at Geojit Financial Services said.

Sun Pharma, BPCL, Trent, ICICI Bank, and Bharat Electronics were the top gainers on the Nifty. Laggards on the Nifty included IndusInd Bank, Infosys, Bajaj Finserv, Wipro and Tech Mahindra.