Markets trim gains: Sensex falls 650 pts from day's high, Nifty below 23,700 as PSU bank, pharma stocks drag

IndusInd Bank, Dr Reddy's, Hindalco, Shriram Finance, and Bajaj Auto were the top laggards on the index.

Benchmark indices Nifty and Sensex traded marginally higher on March 25, thanks to support provided by IT stocks. However, gains were capped as investors booked profits following last week’s sharp rally, while PSU bank and pharma stocks weighed on sentiment.

The broader market showcased weak trends, with the Nifty Midcap 100 and Smallcap 100 slipping 0.8 and 1.2 percent, respectively. Experts caution that the recent correction may not be over yet, warning of potential downside risks ahead. Year-to-date, both indices remain in the red, with midcaps down over 8 percent and smallcaps losing 12 percent, underscoring the lingering weakness in the space.

At about 12:15 pm, the Sensex was up 103.50 points or 0.13 percent at 78,087.88, and the Nifty was up 34.95 points or 0.15 percent at 23,693.30. About 941 shares advanced, 2563 shares declined, and 100 shares unchanged.

Follow our LIVE blog for all the latest market updates

"Even though the market momentum favours the bulls there is no fundamental support to take the market much higher from the present levels, particularly when President Trump’s damocles sword of reciprocal tariff is hanging over the head of markets," VK Vijaykumar, Chief Investment Strategist at Geojit Financial Services, said.

He added that the 5.6 percent rally in the Nifty from the recent lows has been driven by a combination of factors like FIIs turning buyers (Rs 13,765 crores in the last three days), the consequent short-covering and improving macros of the Indian economy. The surge in mid and smallcap space has brought retail investors aggressively back into the market.

Also read: Paytm snaps ties with Juspay, joins Razorpay, Cashfree, PhonePe in industry-wide shift to direct processing

12 out of 13 indices traded lower. Nifty IT emerged as the sole gainer, rising over 1 percent, driven by gains in Infosys, TCS, HCL Tech, and Wipro. Nifty Bank, which added 0.4 percent during mid-day, also slipped into the red. Furthermore, Nifty Pharma, Metal, Oil and Gas and PSU Bank were the biggest laggards, crashing over a percen each, slipping almost 1 percent. Nifty Auto, Consumer Durables, and Realty also fell up to 1 percent.

Shares of SG Finserve were making headlines after the smallcap company hit the 20 percent upper circuit at Rs 432 on March 25, drawing unusual attention after a high-profile bulk deal. Renowned investor Madhusudan Murlidhar Kela acquired 9.51 lakh shares—a 1.7 percent stake—at Rs 350.01 per share on the BSE on March 24, fueling strong buying interest in the stock.

UltraTech Cement shares surged over 3 percent in today’s session after UBS upgraded the stock to ‘buy’, citing an improving outlook for the cement sector. The global brokerage expects demand to rebound strongly in the upcoming fiscal year, marking the end of a rough patch that saw soft demand, falling prices, and sluggish volume growth.

Read more: Markets rally but fund managers remain cautiously optimistic

Zomato shares slipped over 5 percent after Macquarie prefers the restaurant franchise space over food delivery, citing a recovery in discretionary spending as a key driver. While food delivery growth is supported by new user additions and stable unit economics, the brokerage remains cautious on Zomato. Instead, it favours Devyani International and Westlife Foodworld for their stronger positioning in the segment.

"From a technical standpoint, the 23,500 zone, followed by the 89 DEMA coinciding with the recent bullish gap of 23,433-23,400, is likely to cushion any shortcomings in the near period," Sameet Chavan of Angel Onse said. "On the flip side, the swing high of Feb’25 around 23,800 seems the intermediate potent resistance, followed by 24,100 (200 DSMA) in the comparable period. Looking ahead, we have a promising opportunity to capitalize on the significant shifts in market trends alongside the strong momentum as we approach the monthly expiry," he added.

UltraTech Cement, Trent, Bajaj Finserv, and HDFC Bank were the top gainers on the Nifty. IndusInd Bank, Dr Reddy's, Hindalco, Shriram Finance, and Bajaj Auto were the top laggards on the index.