Stock market today: Sensex, Nifty 50 defy global market gloom, end flat on gains in index heavyweights

Indian stock market wrapped up today's trading session, March 11, on a flat note but managed to weather the weak global sentiments, hit by rising fears of a slowdown in the U.S. economy after President Donald Trump did not rule out a recession amid the implementation of U.S. tariffs. 

The markets opened on a sour note, tracking weak Asian peers, but later recovered lost ground in the following hours to end the day largely unchanged.

Analysts believe that domestic equities have seen a major correction in recent months and now the fall in global markets is unlikely to weigh heavily on Indian equities, as the majority of stocks have already priced in global uncertainties and are finding support from lower levels.

Growing recession fears, however, triggered further sell-off in Indian technology stocks, as these companies derive 50-70% of their revenue from the U.S. market.

The Nifty 50 ended the session 0.17% higher at 22,499, while the Sensex closed at 74,102.56, marking a 0.02% drop from Monday's close. The broader market indices ended mixed, with the Nifty Midcap 100 rising 0.67% to 48,762, while the Nifty Smallcap 100 tumbled 0.80% to 15,076.

Global brokerage firm Morgan Stanley expects Indian equities to rebound in 2025, recovering lost ground to other emerging markets. It said, India is likely to be a stock picker’s market from here on, in contrast to one driven by top-down or macro factors since the COVID-19 pandemic.

The brokerage said U.S. reciprocal tariffs will likely be a minor risk and added that valuations in large caps have turned attractive after the recent dip.

Earlier, Jefferies also stated that historically, India tends to outperform other emerging markets within 90-180 days following a period of underperformance.

It noted that the country’s valuation premium is now closer to average levels, well below its 2024 peak. With the dollar index down 6% from its peak, FPI flows could potentially reverse, as Jefferies' FPI ownership tracker indicates that India's positioning among EM funds is at a decade low.

IndusInd Bank tanks 27%

IndusInd Bank shares crashed 27%, recording one of the biggest intraday falls in recent years after the bank disclosed accounting discrepancies in the valuation of certain derivative positions used to hedge FX risk from foreign currency deposits or borrowings, which is expected to have a financial impact of 2.35% of net worth of the bank as of 3QFY25, with a post-tax impact of ₹1,500-1,600 crore.

The significant erosion in the stock's value has caused investors' portfolios to bleed. Mutual funds, which collectively held a 30% stake, have seen an erosion of ₹5,455 crore as the bank lost ₹18,000 crore in market capitalization in today's rout.

Retail investors have incurred a loss of ₹2,916 crore, while LIC, which holds a 5.23% stake in the company, has seen a loss of ₹965 crore.

Sectoral Performance: IT stocks bleed; realty recovers

Amid growing concerns over a U.S. economic slowdown, the selloff in domestic technology stocks deepened in today's trading, extending their pressure on Dalal Street following a series of weak U.S. economic data releases.

The Nifty IT index tanked 1.44%, becoming the worst sectoral performer today, with 6 out of 10 index constituents ending the session in the red. This was followed by Nifty Bank, Nifty Auto, Nifty Media, Nifty Consumer Durables, and Nifty PSU Bank, all of which concluded the session with losses ranging between 0.12% and 1.36%.

On the winning side, realty stocks managed a strong comeback despite weak market sentiment, with the Nifty Realty index emerging as the top sectoral performer, gaining 2.36%. Nifty Oil & Gas and Nifty Pharma also managed to end the session higher.

Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, “Despite significant selloffs in the U.S. and other Asian markets driven by concerns over an economic slowdown caused by the ongoing trade war, the domestic market is showing signs of a gradual recovery. Its relatively lower volatility can be attributed to a moderation in valuations following recent corrections, along with supportive factors such as falling crude oil prices, an easing Dollar Index, and expectations of a rebound in domestic earnings.”

"These elements are expected to contribute to stability amid prevailing trade uncertainties. Meanwhile, attention remains on the upcoming retail inflation data, which could provide insights into potential interest rate cuts," he further added.

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty started the day with a gap down, following weak global cues. However, during the day, the sentiment remained positive. Overall, the sentiment remains positive for the very short term, supported by strong momentum in the RSI indicator and the index closing above the 50 EMA on the hourly timeframe. In the very short term to short term, the index might continue its strength with the potential to reach 22,660–22,700. Above 22,700, the Nifty might move towards 23,000. On the lower end, support is placed at 22,400 on a sustained basis."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.