Nifty, Sensex slip on open, broader markets outperform; auto, pharma stocks under pressure

According to experts, the short-term sentiment for the Nifty 50 may remain positive.

The domestic benchmarks Sensex and Nifty 50 opened with losses on March 28, the last trading day for FY25. Investors are faced with concerns around U.S. President Donald Trump's reciprocal tariffs, which are poised to kick in from April 2, 2025, which is also weighing on global sentiment.

So far, for this financial year, the Nifty 50 has risen around 5.7 percent, while Sensex gained 5.3 percent. In the previous session, which was the expiry for the March series, Nifty 50 snapped a five-series long losing streak, ending the series with gains of around 6 percent.

At 09:37 am, the Sensex was down 245.49 points or 0.32 percent at 77,360.94, and the Nifty was down 64.80 points or 0.27 percent at 23,527.15. About 2121 shares advanced, 800 shares declined, and 110 shares unchanged.

On the flip side, the broader markets outperformed, as investors continued to hunt for beaten-down bargains in the small-cap and mid-cap segments. The Nifty Smallcap 100 index was 1.2 percent higher, while the midcap index gained 0.78 percent.

On the sectoral front, auto and pharma stocks continued to see selling pressure amid tariff concerns, after Trump's plans for 25 percent auto exports. Pharma stocks saw a rub-off effect, as a large portion of its revenue comes from exporting generic drug formulations to the US.

"This subdued performance is largely influenced by global cues, as domestic triggers remain limited. Investors are closely monitoring global trends, crude oil prices, and institutional flows to assess market direction," said Hardik Matalia, Derivative Analyst, Choice Broking.

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Analysts have attributed strong retail buying as a major force behind the upmove across the small-cap and mid-cap space. For many market experts, it is the return of foreign institutional investors into the Indian market that has ushered confidence among retail investors to resume buying.

FIIs purchased equities worth Rs 11,111 crore on March 27, while DIIs also bought equities worth Rs 2,517 crore. "Given the prevailing market dynamics, traders are advised to exercise caution and wait for confirmation of price action at critical levels before initiating new positions," noted Hardik Matalia.

Further, recent policy measures from RBI (relaxation on lending and widening priority sector norms) coupled with SEBI’s move to enhance market participation from foreign investors help boost the investor sentiment and signal authorities push to restore confidence on India growth story, noted Satish Chandra Aluri, Lemonn Markets Desk.

On a technical basis, experts suggested that the short-term sentiment for the Nifty 50 may remain positive, with a potential move toward 23,800 if it sustains above 23,600. On the downside, support is placed at 23,400.

Shares of Asia's oldest bourse BSE rallied in opening trade, jumping 10 percent, after competitor National Stock Exchange Ltd. (NSE) decided to defer its plan on shifting the weekly, monthly, and quarterly derivatives expiry day to Monday, from Thursday.

NSE's move to defer its plan to switch expiry days came after the markets regulator Securities and Exchange Board of India (SEBI) released a consultation paper, proposing that the expiry day could be on Tuesday or Thursday.

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