FINAL TRADE: Nifty gives up 22,050, Sensex sheds 454 pts dragged by oil & gas, auto and IT stocks

Stock market today: The domestic stock market slipped over half a per cent on Friday, March 15, dragged by oil & gas, automobile, and information technology (IT) stocks, while small- and mid-cap stocks settled mixed as mutual funds started disclosing the results of stress tests ordered by the Sebi to assess their resilience to sudden redemption pressures.

The 50-scrip Nifty index closed at 22,023.35, down 123.3 points, or 0.56 per cent, from its previous close, while the Sensex gauge shed 453.85 points, or 0.62 per cent, at 72,643.43. 

"The Nifty has once again closed below the rising trendline, bringing market sentiment back into a state of weakness. The momentum indicator suggests bearish momentum in the near term," Rupak De, Senior Technical Analyst, at LKP Securities, said. 

"Immediate support is situated at the 50DMA, currently at 21,900, which is expected to provide support for the Nifty. A decisive drop below 21,900 could lead to a sharp decline in the index. On the upside, resistance is observed in the range of 22,200–22,250," De added. 

Mahindra & Mahindra, BPCL, Coal India, and Tata Motors were among the top losers in the Nifty basket, falling up to 5-2 per cent. On the other hand, UPL, Bharti Airtel, HDFC Life, and Bajaj Finance were among the top gainers. Weekly, the Sensex slipped 1.99 per cent while the Nifty fell over 2 per cent. 

Nifty IT declined 0.47 per cent during the session, following a US inflation reading, which fuelled worries over the Federal Reserve's future rate trajectory. IT companies earn a major share of their revenue from the US.

Broader indices Nifty Smallcap100 outperformed the headline gauges to settle 0.39 per cent higher, while Nifty Midcap100 ended 0.46 per cent lower, respectively. Small- and mid-cap share indexes have lost about $70 billion in combined market value this week after the country's market regulator raised concerns about "froth" and suggested mutual funds limit lump-sum investments.

"Cautiousness towards mid- and small caps continued to drag market sentiment, dampening the broader market. However, the moderation in global commodity prices and the upward revision of India's GDP for FY25 are poised to highlight robust domestic demand, potentially supporting a rebound once the broader market attains stability," Vinod Nair, Head of Research, Geojit Financial Services, said.  

"We anticipate continued bargain opportunities in mid-and small-cap stocks, whose valuations are underpinned by strong fundamentals," he further said. Meanwhile, Nifty closed 195.85 points, or 0.42 per cent, lower at 46,594.1, led by a fall in Punjab National Bank, Bank of Baroda, and other six declining bank stocks. 

Global Market

European shares were subdued as gains in the telecommunications sector were offset by a sell-off in global equities. Stocks slipped on Friday as hotter-than-expected US inflation figures dampened June rate-cut bets.

The pan-European STOXX 600 index (.STOXX) was flat as of 8:16 GMT but was set for its eighth consecutive weekly gain. Thursday's robust US producer price data tempered expectations of a June interest rate cut.

(with agency inputs)

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