Sensex closes tad lower, Nifty near 22,500 as realty, oil & gas stocks rally; IndusInd Bank crashes 27%

However, experts suggest that ongoing tariff conflicts and growing concerns about a potential federal government shutdown have fueled worries that the U.S. economy might be heading toward a recession. Weaker consumer sentiment, slower consumer spending, and tariff risks continue to weigh on the growth outlook. US stocks are also under pressure from a stronger Japanese yen and a spike in bond yields, as investors unwind yen carry trades on expectations of an upcoming interest rate hike in Japan.

Also read: IndusInd Bank promoter Ashok Hinduja assures support, 'ready to inject capital' if required

The Nifty Bank index led the sectoral slump, falling 0.72 percent as heavyweight stocks like HDFC Bank, IndusInd Bank and Axis Bank came under pressure amid weak global cues. The Nifty IT index followed next, slipping 0.6 percent as Infosys and Wipro ranked among the top losers on the Nifty 50, while the IT index extended its losing streak to a fourth straight session. Nifty Auto was down 0.4 percent.

Nifty Realty was the brightest spark, rallying close to 4 percent after gains in Macrotech Developers, Pheonix Mills, DLF and Godrej Properties lifted the index higher. Other gainers were Nifty Oil & Gas, Pharma, Infra and Metal up in the range of 0.6 to 1.1 percent.

Read more: Nuvama warns Nifty's decline could persist, says earnings outlook remains muted

IndusInd Bank shares were making headlines after a ruthless 27 percent fall, the worst in about 5 years. This comes after the bank reported discrepancies in its derivative portfolio. During an internal review of processes relating to parts of its derivatives portfolio, IndusInd Bank has estimated an adverse impact of 2.35 percent on its networth as a result of some discrepancies in these account balances, a company filing said on March 10.

NMDC shares recouple most losses to end 0.4 percent lower even as Kotak Institutional Equities said that the iron ore major is heading towards a sticky patch starting FY26, with its earnings likely to peak this year. The Kotak note anticipates a rise in India’s iron ore surplus over FY26-27, driven by lower exports and a ramp-up in merchant mining. Lloyds Metal's Gadchiroli mine is set to scale up production from 10 mtpa to 25 mtpa between FY26-27. NMDC’s volumes have remained flat on-year in the first 11 months of FY25, falling short of the 10 percent growth target.

"The recent shift in the market dynamics has effectively brought the impressive winning streak to a standstill. This pause can be largely attributed to a noticeable wave of profit-taking activity that swept through various sectors after last week's robust rally, where stock prices surged significantly," Sameet Chavan, Head of Technical and Derivatives Research at Angel One said."

He added that from a technical standpoint, the subzone of 22,650-22,700, which corresponds with the 20-DEMA and the bearish gap, presents a significant barrier for any attempts at upward movement in the market. A successful breakout of this zone could only pave the way for a substantial rally in the markets, indicating increased bullish momentum. On the flip side, 22,350-22,250 acts as a robust support zone, likely to cushion any declines.

Trent, BPCL, Sun Pharma, ICICI Bank, and Hero MotoCorp were the top gainers on the Nifty. Laggards on the Nifty included IndusInd Bank, Infosys, M&M, Wipro, and Bajaj Finserv.

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