Nifty, Sensex extend momentum as investors shrug off tariff fears; banking stocks outshine

Nifty Auto and Nifty Pharma were the top sectoral laggards in trade, underperforming peers.

After capping a seven- day rally in the previous session to take a breather, the benchmark indices Nifty 50 and Sensex have picked up momentum on March 27, despite fears of U.S. President Donald Trump's latest tariffs weighing on global markets. Further, this is the last trading session for the March 2025 series.

At 11:15 am, the Sensex was up 406.70 points or 0.53 percent at 77,695.20, and the Nifty was up 116.70 points or 0.50 percent at 23,603.55. About 1697 shares advanced, 1643 shares declined, and 109 shares unchanged.

The gains in the broader markets underperformed the frontline indices as traders looked to the large-caps stocks for safety amid global uncertainties. The Nifty Midcap 100 and Nifty Smallcap 100 indices were trading higher by 0.3 percent and 0.4 percent respectively.

Banking stocks rallied sharply, with the Bank Nifty index quoting 51,651.70, up by 0.86 percent. The PSU banking gauge outperformed, soaring nearly two percent.

On the flip side, auto stocks lagged in trade as U.S. President Donald Trump announced a 25 percent tariff on imported cars, raising concerns over trade policies.

While the direct export of fully assembled vehicles from India to the U.S. is relatively limited, auto component makers with substantial export exposure will feel the impact more acutely.

The companies likely to be impacted include automakers Tata Motors and Eicher Motors, as well as auto component makers Sona BLW, Samvardhana Motherson, and several others, which predominantly export to Europe and major Asian markets such as Japan, South Korea, and China, which supply automobiles to the US.

Pharma stocks also saw heavy selling pressure in trade, as investors rushed to offload their holdings. The Nifty Pharma index slumped 1.3 percent, while JB Chemicals, Ajanta Pharma and Lupin were the top losers on the index.

Follow our market blog to catch all the live updates

Over the past few sessions, foreign institutional investors have returned to domestic equities in a big way.  During the last five trading days FIIs bought equity for Rs 21,376 crore while DIIs sold equity for Rs 9,704 crore.

"Institutional activity suggests that while FIIs are not overly concerned about tariffs DIIs are taking a cautious stance. Despite net institutional buying yesterday the market drifted down indicating concern and fear in the market," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

In the previous session,  rising crude oil prices due to immediate supply constraints have prompted investors to secure profits after recent gains, which were supported by foreign capital inflows and a positive domestic macroeconomic outlook, ICRA Analytics noted.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.