Sensex up 200 pts, Nifty at 22,600 as metal, FMCG stocks gain; oil & gas, realty drag

Power Grid Corp, HUL, Infosys, Bajaj Finance, and JSW Steel were the top gainers on the Nifty.

Benchmark indices Nifty and Sensex traded with firm gains in the afternoon on March 10 after a sharp uptick in metal and FMCG stocks bolstered sentiment on the bourses. This comes even as uncertainty over tariff negotiations and geopolitical tensions kept investors on edge. Last week, the Nifty extended its winning streak to three sessions, while the Sensex dipped slightly, their biggest gain in three months.

At noon,  the Sensex was up 212.37 points or 0.29 percent at 74,544.95, and the Nifty was up 47.75 points or 0.21 percent at 22,600.25. About 1308 shares advanced, 2304 shares declined, and 149 shares unchanged.

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"The declining intensity of FII selling witnessed last week is a positive. However, the market momentum witnessed last week is unlikely to continue beyond a point since the element of uncertainty is high. The threat of reciprocal tariffs on India starting in early April is a major negative that the market cannot shrug off. There is no clarity on which sectors will be impacted by the tariffs. This uncertainty will keep the market range bound," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

He added that investors can play it safe by focusing on domestic consumption themes which will not be impacted by the potential tariffs. Export-oriented segments like IT and pharma will be volatile in responding to news flows surrounding US actions.

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The broader market, represented by mid and smallcap indices underperformed with the midcap 100 and smallcap 100 indexes falling 0.2 and 0.8 percent, respectively. Both are down 24 percent and 27 percent from their peaks, yet analysts remain wary of valuations, warning that further downside may be ahead.

Among sectoral indices Nifty Metal and FMCG were the backbone of the rally. Metal stocks rallied after the global brokerage firm Jefferies stated that it maintains a constructive view on the Indian metals sector, naming the mentioned stocks as their top picks. As a result, Tata Steel and JSW Steel gained. FMCG stocks following a five-day slump came out of their slumber to trade in the green. Other gainers included IT and Pharma. Losers on the bourses were Auto, Consumer Durables, Oil and Gas and PSU Bank index. Maruti Suzuki, M&M, and Bajaj Auto were the top laggards.

Shares of Trent Ltd. shares fell as much as 2.5 percent to Rs 4,873 in morning trade on March 10, emerging as one of the top Nifty 50 losers, after Kotak Institutional Equities maintained a ‘Reduce’ rating and set a price target of Rs 5,150, dampening investor sentiment. Kotak flagged concerns over Trent’s revenue throughput, citing the impact of densely located new stores of Westside and Zudio.

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Shares of BSE slipped 4 percent after Nuvama Institutional Equities cut its price target while retaining a ‘Buy’ recommendation. The decline comes as the National Stock Exchange (NSE) revised the expiry day for its derivative contracts to Monday, a day ahead of BSE’s expiry. Nuvama noted that this shift could reduce trading volumes, as retail traders—who tend to be more active closer to expiry—may see fewer opportunities.

"Since indicators were extremely oversold, a bounce from this zone was evident. Looking at the weekly chart, Nifty has once again taken support near the 89 WEMA, a dynamic support level that sparked strong up moves in October 2020, June 2022, and March 2023. Adding to the positive signs, the RSI Smoothened indicator has given a fresh buy signal from the oversold zone on the daily chart, and buying across different sectors shows that market strength is improving. However, even with these positive signals, it may still be too early to say that the correction is completely over," Sameet Chavan, Head of Technical and Derivative Research at Angel One said.

"This recent bounce is happening after a sharp correction over the past few months, and with important resistance levels still ahead, traders should stay cautious and focus on key levels one step at a time. The first resistance to watch is around 22,700, where there’s a bearish gap on the weekly chart, along with the 20 DEMA.  If Nifty manages to cross this level, the next hurdle is near 22,800, which was earlier a strong support and could now act as resistance," he added.

Power Grid Corp, HUL, Infosys, Bajaj Finance, and JSW Steel were the top gainers on the Nifty. IndusInd Bank, Trent, ONGC, Titan Company and Eicher Motors were the major laggards.