Mid-day Mood | Sensex, Nifty down; small, midcaps hammered over valuation concerns

Indices extend losses

The Sensex and the Nifty were trading lower around noon on March 6 amid mixed global cues but it was the broader market which was in focus due to the heavy selling in the small and midcap stocks.

The broader market took a hit as investors rushed to booked partial profits amid concerns over stretched valuations. While the BSE midcap was down 1.4 percent, the smallcap index was trading 2.2 percent lower.

Around noon, the Sensex was down 190.49 points or 0.26 percent at 73,486.64, and the Nifty was down 78.00 points or 0.35 percent at 22,278.30. About 527 shares advanced, 2,670 shares declined, and 66 shares remained unchanged.

Sectoral Trends

IT stocks extended losses for the second day. Infosys, TCS, Wipro, and Tech Mahindra shares led the losses in the segment. Shares of companies in the oil and gas, and power companies also declined.

On the flip side, ICICI Bank, Axis Bank, and Kotak Mahindra Bank were among the top frontline gainers in Nifty Financial Services.

Fundamental View

Looking ahead, sectoral rotation will probably remain significant, and as a result, it is essential to adjust the approach to the current market situation, said Sameet Chavan, the head of technical and derivative research at Angel One. Additionally, with a bullish undertone, market dips are likely to favor the bulls, said Chavan. "Therefore, one should keep following the 'Buy on Dips' approach. Meanwhile, a close watch on global developments should be kept, as they might direct the near-term trend."

Technical View

After testing robust support at 22,300, the index displayed a DOJI candlestick pattern, indicating indecision between bulls and bears, said Mandar Bhojane, research analyst at Choice Broking. "If the price breaches the 22,460 level, there is potential for further upward movement towards 22,600 and 22,700," said Bhojane. Conversely, the immediate support for the Nifty 50 is identified at 22,300, he added.

Key Nifty gainers

Kotak Mahindra Bank, Axis Bank, Bajaj Auto, ICICI Bank, and IndusInd Bank

Key Nifty losers

NTPC, Adani Enterprises, ONGC, Power Grid Corp of India, and BPCL

Key Sensex gainers

Kotak Mahindra Bank, Axis Bank, ICICI Bank, IndusInd Bank, and Sun Pharma

Key Sensex losers

NTPC, Power Grid Corp of India, Tata Steel, Wipro, and UltraTech Cement

Stock moves

Mahanagar Gas: Shares fell over 13 percent after brokerage firm Citi downgraded the stock to 'Sell' from 'Buy' and cut its target price.

Torrent Pharma: Shares hit a 52-week high of Rs 2,745.55 in the opening trade after a successful inspection by the US FDA.

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