Posted on March 28, 2025, by Niftynews
The Indian stock markets saw Sensex and Nifty struggling in the face of global weakness, as investors reacted to tariff-related uncertainties in the United States. Despite the weakness in headline indices, there was a positive market breadth, with broader market indices outshining the benchmark indices. Both IT and auto sectors bore the brunt of the concerns surrounding tariffs.
Market Overview: Sensex and Nifty Under Pressure
By midday on March 28, Sensex had dropped 65 points (0.08%) to 77,541, and Nifty had slipped by 10 points (0.04%) to 23,581. While the broader market indices were outperforming, the headline indices faced downward pressure due to lackluster global cues and investor caution stemming from tariff uncertainty in the US. Notably, IT and auto stocks were the primary drivers of the decline as they are highly sensitive to such trade and policy risks.
Despite the challenges facing the Sensex and Nifty, the market breadth remained positive. 2,032 stocks advanced, while 1,303 declined, and 125 remained unchanged. This indicates that even though the benchmark indices were struggling, there was still some optimism in the broader market.
Broader Markets Outperforming the Benchmarks
Interestingly, the broader market indices like the Nifty Midcap 100 and Nifty Smallcap 100 gained 0.5% during intra-day trading. This outperformance can be attributed to the foreign inflows supporting the monthly gains for March 2025, as well as the overall strength in smaller, mid-cap stocks, which have been more resilient to global market fluctuations.
Nifty and Sensex Technical Levels
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the Nifty staying above 23,400 and the Sensex staying above 77,100 would be key to maintaining a bullish structure in the market. Resistance levels have been identified at 23,750–23,800 for Nifty and 78,000–78,200 for Sensex. If these levels are breached, there could be an upside potential for the indices. However, any decline below 23,400 for Nifty or 77,100 for Sensex could signal a shift toward a bearish sentiment.
Analyst Outlook: Buying Opportunity Amid Volatility
Despite the recent struggles in Sensex and Nifty, analysts at ICICI Securities have suggested that any pullbacks should be seen as a buying opportunity. They noted that volatility is likely to persist due to the upcoming earnings season and the potential tariff policy clarity from the US government under President Donald Trump.
Historical trends indicate that the markets might be entering a mature consolidation phase with limited downside. This could set the stage for a potential next leg of the uptrend in the future, provided there are no major negative developments on the global front.
Nifty 50 New Entrants Show Strong Performance
A notable development in the Nifty 50 on March 28, 2025, was the strong performance of the latest entrants, Zomato and Jio Financial Services. On their debut day in the benchmark index, both stocks traded higher, signaling positive investor sentiment. These additions are expected to bring in passive inflows of around $602 million for Zomato and $308 million for Jio Financial Services, according to Nuvama Institutional Equities.
Oil Stocks Rally on Saudi Aramco Investment Talks
Shares of ONGC and BPCL surged by up to 4% on March 28, 2025, following reports that Saudi Aramco is in discussions to invest in Indian refineries. According to sources cited by Reuters, Saudi Aramco is exploring investments in two upcoming refinery projects in India. This move would help secure a long-term market for Saudi crude in one of the world’s fastest-growing energy markets.
Conclusion
The Sensex and Nifty have been struggling on March 28, 2025, weighed down by global concerns, particularly tariff uncertainties from the US. Despite the decline in the headline indices, broader markets showed resilience, and analysts remain optimistic about future opportunities. Investors are advised to watch key levels for potential buying opportunities while keeping an eye on broader global developments and earnings season.
With IT and auto stocks under pressure, other sectors, such as oil and gas, saw strong performances, driven by news of potential Saudi investments. The market remains in a volatile phase, and investors may want to stay cautious and look for opportunities to enter during market dips.
