Nifty, Sensex end weak as global uncertainties outweigh soft inflation; IT, auto stocks hit hard

Indian stock markets will remain closed on Friday for Holi.

Domestic benchmark indices ended the truncated week on a negative note on March 13 as persisting global uncertainties outweighed the optimism emerging from soft inflation prints of India and the US. Automobile and information technology stocks were hit especially hard, weighing down on the Nifty and Sensex.

At the close, the Sensex declined by 200.85 points or 0.27 percent to settle at 73,828.91, while the Nifty slipped 73.30 points or 0.33 percent to 22,397.20. Market breadth remained negative, with 1,463 stocks advancing, 2,348 declining, and 123 remaining unchanged.

The Indian stock market will remain closed on Friday for Holi.

The benchmarks had opened the session in the positive territory, buoyed by upbeat global cues after inflation in the US came in milder-than-expected, sparking hopes of providing the Federal Reserve with more room to cut rates.

Domestically too, the February inflation print slipped below the Reserve Bank of India's 4 percent target, coming in at seven-month low of 3.61 percent, also lower than Reuters' estimate of 3.98 percent.

To that effect, Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that despite positive macroeconomic data from the US and India, global uncertainties continue to weigh on Indian equities.

"Under normal conditions, such macro data would have provided a boost to the stock market, particularly in areas where valuations remain fair and even attractive. However, the global landscape is currently unfavourable, with escalating trade tensions fueled by Trump's tariff policies," Vijayakumar stated. He further noted that the ongoing disruption in global trade dynamics, driven by tariffs and retaliatory measures, will likely limit any significant rally in the Indian market.

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Within the broader markets, 12 out of the 13 major sectoral indices ended the session in a sea of red. The Nifty Media and Nifty Realty indices were the worst hit, plunging nearly 2 percent each, followed by Nifty Auto which ended over 1 percent lower. The Nifty IT index also continued its fall, dropping another percent.

The Nifty IT index has entered bear market territory, tumbling over 21 percent from its peak. In the previous session alone, the index slid nearly 3 percent, deepening its sharp decline. Major IT players, including Wipro, TCS, Infosys, HCLTech, and Tech Mahindra, all traded lower.

Looking ahead, Nilesh Shah of Envision Capital anticipates further downside in large-cap IT stocks but sees potential opportunities in midcap counterparts, as he shared in an interaction with CNBC-TV18.

Among others, Nifty Infra, Nifty Pharma, Nifty Bank, Nifty FMCG, Nifty Realty and Nifty Metal indices fell as much as 0.6 percent. The midcap space also remained under pressure, with the key index sinking 0.8 percent, however, selling was more intense in the smallcap segment as the benchmark index slipped over 1 percent.

Names like SBI, ICICI Bank and Bharat Electronics were the top gainers on the Nifty while Shriram Finance, Bajaj Auto and Tata Motors were the worst hit.

Shares of Adani Green Energy closed over 2 percent higher after Macquarie initiated coverage on the stock with an 'outperform' call and a price target of Rs 1,200. This indicates a 40 percent potential upside from Wednesday's closing figures. Adani Green Energy continues to be India's leading energy transition, with a targeted 50 GW capacity build-up by FY2030 (current capacity is at 12 GW). Therefore, Macquarie in its note expressed its forecast of Adani Green's EBITDA rising at 25 percent CAGR over the next five years, on a more conservative pathway.

Shares of Mahanagar Telephone Nigam (MTNL) rallied over 12 percent after government said in the Parliament that the company has earned Rs 2,134.61 crore from monetization of land and building assets up to January 2025.

On the technical front, Rupak De, Senior Technical Analyst at LKP Securities, highlighted the formation of a symmetrical triangle pattern on the hourly chart of the Nifty, indicating a continuation trend. "Over the past three sessions, the index has largely traded within the 22,350–22,550 range. A breakout above 22,550 could pave the way for a significant rally in the short term, while a breakdown below 22,350 may dampen market sentiment," De added.