Sensex, Nifty give up early gains as selling in IT, auto stocks gather pace

The Sensex and Nifty opened on a positive note amid upbeat global cues, but profit selling pressure soon kicked in.

Benchmark indices gave up early gains, slipping marginally into the red by mid-day on March 13 as selling in information technology and automobile stocks intensified. Indices had opened on a positive note buoyed by easing inflation in the US and India, which sparked hopes of the respective central banks going easy on their monetary policies.

At 12.25 am, the Sensex was down 45.96 points or 0.06 percent at 73,983.80, and the Nifty was down 31.10 points or 0.14 percent at 22,439.40. About 1,546 shares rose, 1,853 fell, and 125 were unchanged.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that while macroeconomic data from the US and India seem positive, global uncertainties pose challenges for Indian equities.

"Under normal circumstances this macro data would have boosted the stock market where valuations are fair and even attractive in pockets. But unfortunately the global scenario is highly unfavourable with the trade war triggered by Trump getting worse," Vijayakumar added.

He further feels that the disruption in the global trade setup due to Trump's tariffs and its countermeasures will constrain a rally in the Indian market. "Investors should focus on domestic consumption themes," he added.

On the sectoral front, with its recent rout, the Nifty IT index has entered bear market territory, plunging over 21 percent from its peak. In the previous session alone, the index shed nearly 3 percent, extending its sharp decline. Prominent names like Wipro, TCS, Infosys, HCLTech and Tech Mahindra, all traded with cuts.

Looking ahead, Nilesh Shah of Envision Capital stated expectations of more downside in large-cap IT stocks, in an interaction with CNBC-TV18.

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Aside from that, in the broader markets, the Nifty Media, Nifty Metal, Nifty Realty and Nifty Auto indices traded with cuts of upto 1 percent while Nifty Bank, Nifty FMCG, Nifty Energy and Nifty PSU Bank indices gained as much as 0.7 percent.

The midcap space remained under pressure, with the key index falling 0.1 percent, however, selling was more intense in the smallcap segment as the benchmark index slipped 0.5 percent.

Names like ONGC, SBI and Bharat Electronics were the top gainers on the Nifty while Shriram Finance, Hindalco and Tata Motors were the worst hit.

Among specific stocks, Gensol Engineering shares tanked 5 percent following its plans to fundraise Rs 600 crore to enhance its financial standing. The firm's board of directors approved two fundraising initiatives. The first, Rs 400 crore will be raised through the issuance of Foreign Currency Convertible Bonds (FCCBs). Second, Rs 200 crore to be raised through the issuance of warrants to promoters. "This move underscores the company’s strong commitment to achieving sustainable growth, reducing debt, and maximising value for its stakeholders," said the firm in an exchange filing.

Shares of Adani Green Energy also surged 4 percent after Macquarie initiated coverage with an 'outperform' rating and a price target of Rs 1,200, suggesting a potential 40 percent upside from Wednesday's closing price. As a key player in India's energy transition, Adani Green aims to expand its capacity to 50 GW by FY2030, up from the current 12 GW. Macquarie's note projects a 25 percent CAGR in the company’s EBITDA over the next five years, even under a conservative outlook.