Fag-End Selling Drags Sensex, Nifty 50 Lower; Reliance, L&T Lead Decline
Stock Market Today: Indian Equities Lose Steam Amid Global Weakness
Fag-End Selling : Indian stock markets ended in the red on Monday, March 10, after last week’s strong rally, as fag-end selling pressure in heavyweight stocks like Reliance Industries and Larsen & Toubro (L&T) dragged the Nifty 50 and Sensex lower. The frontline indices, which opened on a flat note, gained momentum in the early hours but failed to hold on to their gains as the day progressed.
By the closing bell, the Nifty 50 fell 0.41% to 22,460, while the Sensex dropped 0.29% to settle at 74,115. The broader markets experienced deeper cuts, with the Nifty Midcap 100 losing 1.53% to end at 48,440 and the Nifty Smallcap 100 plunging 1.97% to 15,198.
Global Cues Weigh on Market Sentiment
A weak global environment played a key role in dampening investor sentiment. Asian markets declined after China’s consumer price index (CPI) dropped at its sharpest pace in 13 months, raising concerns about sluggish demand in the world’s second-largest economy.
Meanwhile, U.S. markets tumbled last Friday as Nonfarm Payroll data fell short of expectations, increasing fears of an economic slowdown. The tech-heavy Nasdaq entered correction territory, falling over 10% from its recent peak.
Adding to the negativity, Goldman Sachs cut its Nifty 50 target to 25,500 from 27,000, citing concerns over slowing corporate earnings growth. The brokerage firm retained its ‘Marketweight’ rating on Indian equities, predicting low-teens earnings growth over the next year.
Sectoral Performance: Realty, Oil & Gas Under Pressure
Sectoral indices mirrored the overall bearish trend, with 12 out of 13 major sectors closing in the red.
| Sector | Performance (%) |
|---|---|
| Nifty Realty | -2.00% |
| Nifty Oil & Gas | -1.90% |
| Nifty Midcap 100 | -1.53% |
| Nifty Smallcap 100 | -1.97% |
| Nifty PSU Bank | -1.40% |
| Nifty Auto | -1.30% |
| Nifty FMCG | +0.22% |
The Nifty Realty index was the worst performer, shedding 2% as the selloff in real estate stocks continued for a third straight session. Oil & gas stocks also came under pressure as weak economic indicators from the U.S. and China dented crude oil demand outlook.
Among other sectors, Nifty PSU Bank, Auto, Consumer Durables, and Metal indices recorded losses of over 1%, while Nifty FMCG was the sole gainer, closing 0.22% higher.
Expert Opinions: Market Volatility to Persist
Market experts suggest that global headwinds and profit-booking will keep volatility high in the near term.
- Vinod Nair, Head of Research, Geojit Financial Services, commented,
“The rise in U.S. unemployment rates and trade tensions have increased uncertainty, leading to selling pressure. Investors should tread cautiously as volatility is expected to continue.” - Rupak De, Senior Technical Analyst, LKP Securities, noted,
“The Nifty faced resistance at the 21-day EMA, leading to a decline towards 22,400. If this level is breached, further downside may be seen, while resistance is placed at 22,750.” - Hrishikesh Yedve, AVP Technical & Derivatives Research, Asit C. Mehta Investment Intermediates, stated,
“Nifty’s immediate resistance stands at 22,720, while support is at 22,370. Traders should buy near support levels and book profits at resistance zones.”
Technical Analysis: Key Levels to Watch
| Index | Support | Resistance |
|---|---|---|
| Nifty 50 | 22,370 | 22,720 – 22,800 |
| Sensex | 73,900 | 74,500 – 75,000 |
A break below 22,370 could intensify selling pressure, while an upmove above 22,750-22,800 could trigger fresh buying interest.
Conclusion: What Lies Ahead?
With global uncertainties and economic data influencing market moves, Indian equities are likely to remain volatile in the short term. Investors should keep an eye on upcoming U.S. and India CPI data, which could offer cues for future market direction.
Q&A Section for Quick Understanding
❓ Why did the Sensex and Nifty 50 decline today?
✔ The indices fell due to profit-booking in heavyweight stocks like Reliance and L&T, weak global cues, and a downgrade by Goldman Sachs.
❓ Which sectors were the worst hit?
✔ Nifty Realty (-2%) and Nifty Oil & Gas (-1.9%) were the biggest losers, while Nifty FMCG was the only gainer (+0.22%).
❓ How did global markets impact Indian equities?
✔ A decline in China’s inflation data and weak U.S. job numbers fueled economic slowdown fears, leading to a global selloff.
❓ What are the key levels to watch for Nifty?
✔ Support: 22,370 | Resistance: 22,720 – 22,800. A fall below 22,370 may accelerate selling.
❓ What should investors do now?
✔ Experts suggest buying near support levels and booking profits at resistance zones while being cautious of global headwinds.
By keeping an eye on technical indicators and global economic events, investors can navigate the current market volatility with better-informed decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.