🤯 Market Mayhem! 📉 Sensex & Nifty React!
Markets
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On Tuesday, benchmark equity indices Sensex and Nifty experienced significant intraday fluctuations. Initially, the Sensex rose 511.46 points, reaching a high of 76,014.31, while the Nifty climbed to 23,577.55. However, by noon, both indices retreated, with the Sensex settling at 75,502.85 and the Nifty at 23,408.80. Several key stocks, including Wipro, Cipla, and Bajaj Finance, contributed to the declines within the Nifty 50, while ETERNAL and Tata Steel saw gains. Market breadth remained positive, with more shares advancing than declining. The day coincided with the weekly expiry of Nifty derivatives contracts. Geopolitical tensions, particularly the ongoing conflict involving the United States, Israel, and Iran, coupled with rising oil prices due to concerns over the Strait of Hormuz, influenced market sentiment. The US Federal Reserve’s policy meeting also occurred, with expectations of maintained interest rates. These combined factors resulted in a day of volatility for Indian equity markets.
NIFTY 50 INDEX: TUESDAY’S MARKET MOVEMENT
The benchmark equity indices Sensex and Nifty experienced a day of fluctuating performance on Tuesday, marked by profit-booking after a strong rebound the previous day. Initial gains were trimmed as the session progressed, leading to a red closure.
INITIAL GAINS AND INDEX LEVELS
In early trading, the Sensex rose 511.46 points or 0.67 percent to touch a high of 76,014.31, while the Nifty also reclaimed the 23,500 mark and hit 23,577.55. The Nifty 50 closed at 23,391.90, a decline of 16.90 points or 0.07 percent, and the Sensex closed at 75,397.92, a decrease of 104.93 points or 0.14 percent.
SECTORAL PERFORMANCE AND LEADERS
Wipro, Cipla and Bajaj Finance were among the major laggards in the Nifty50 pack, declining up to 3 percent, while ETERNAL and Tata Steel gained up to 4 percent. Market breadth was positive as about 2076 shares advanced, 1632 shares declined, and 138 shares unchanged.
KEY MARKET DRIVERS AND ANALYST COMMENTARY
Profit booking emerged at higher levels with IT, FMCG and financial shares leading the losses. The IT index was the biggest laggard, declining 0.8 percent ahead of the two-day US Federal Reserve policy meeting. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the recent market movement reflected uncertainty linked to the ongoing geopolitical tensions. “With total uncertainty and confusion regarding the trend of the war continuing, this uncertainty is getting reflected in the market, too. Even seasoned experts lack conviction to advise investors on the right strategy. All that can be said with conviction now is: remain invested and continue with SIPs.” Persistent FII selling: Foreign institutional investors (FIIs) continued to remain sellers in the domestic market. FIIs sold equities worth Rs 9,365.52 crore on Monday. So far in March, foreign investors have sold shares worth over Rs 66,000 crore and are on course for their highest monthly outflow since January 2025.
FOREIGN EXCHANGE MARKET OBSERVATIONS
The rupee declined 14 paise to trade at 92.42 against the US dollar on Tuesday, weighed down by rising crude oil prices and continued foreign fund outflows. Forex traders said subdued domestic equities and a stronger US currency also pressured the local unit as investors remained cautious ahead of the US Federal Reserve’s interest rate decision.
WEEKLY DERIVATIVE EXPIRES
Tuesday also marks the weekly expiry of Nifty derivatives contracts. Market participants often adjust or square off positions on expiry days, which tends to increase volatility.
GEOPOLITICAL CONCERNS AND GLOBAL SENTIMENT
The conflict involving the United States, Israel and Iran has entered its third week, with no immediate signs of easing. Fresh exchanges of fire were reported in parts of West Asia on Tuesday. Such developments typically weigh on global risk sentiment and can trigger cautious trading in equity markets, including India.
CRUDE OIL PRICE FLUCTUATIONS AND THEIR IMPACT
Brent crude was hovering around USD 103 per barrel amid concerns over supply disruptions. The Strait of Hormuz, a key oil transit route handling nearly one-fifth of global supply, remains largely shut. Rising oil prices are negative for India, which is heavily dependent on crude imports.
US FEDERAL RESERVE POLICY MEETING AND MARKET EXPECTATIONS
The US Federal Reserve began its March 17–18 policy meeting on Tuesday. Markets largely expect rates to remain unchanged at 3.50–3.75 percent, but investors are watching the updated policy projections.
TECHNICAL ANALYSIS AND MARKET VIEW
Anand James, Chief Market Strategist at Geojit Investments, said the Nifty’s initial rebound towards 23,600 unfolded as expected, but momentum could remain limited. He said early moves on Tuesday may lack the strength seen in the previous session after the index retraced part of Monday’s gains towards the close. According to him, the Nifty may see dips towards 23,276 initially, followed by sideways movement or attempts to move higher, though such advances may struggle to gather momentum.
This article is AI-synthesized from public sources and may not reflect original reporting.