The Indian stock market remained in the red during the afternoon session on March 28, as global market weakness and uncertainty over US tariffs weighed on investor sentiment. The auto and IT sectors faced the brunt of the decline, reflecting broader concerns over the economic impact of trade policies.

As of midday, the Sensex slipped 65 points (0.08%) to 77,541, while the Nifty dropped 10 points (0.04%) to 23,581. Despite the weakness in benchmark indices, market breadth remained positive, with 2,032 stocks advancing, 1,303 declining, and 125 unchanged.

Broader Markets Show Strength

While the headline indices struggled, broader markets showed resilience. The Nifty Midcap 100 and Nifty Smallcap 100 both registered 0.5% gains in intraday trade. Analysts believe this signals continued interest in mid and small-cap stocks, as investors look beyond large-cap volatility.

According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, Nifty staying above 23,400 and Sensex above 77,100 is crucial for maintaining a bullish trend.

"On the upside, Nifty faces resistance at 23,750–23,800, while Sensex has key resistance at 78,000–78,200. However, a fall below 23,400 or 77,100 could turn sentiment bearish," he noted.

Market Volatility Expected to Persist

Analysts at ICICI Securities advised investors to view any pullback as a buying opportunity, as volatility is likely to continue due to the upcoming earnings season and potential clarity on US tariff policies.

"We believe the index is nearing a mature consolidation phase with limited downside, setting the stage for the next leg of the uptrend," they stated.

Zomato and Jio Financial Services Debut in Nifty 50

Among individual stocks, Zomato and Jio Financial Services saw strong buying interest on their first day as part of the Nifty 50 index. Their inclusion is expected to drive passive inflows, with estimates suggesting $602 million for Zomato and $308 million for Jio Financial Services, according to Nuvama Institutional Equities.

ONGC and BPCL Surge on Saudi Aramco Investment Reports

Shares of ONGC and BPCL surged up to 4%, following reports that Saudi Aramco is in discussions to invest in Indian refineries. Sources told Reuters on March 27 that the oil giant is exploring investments in two upcoming refinery projects in India, aiming to secure long-term crude supply agreements in one of the world's fastest-growing economies.

Technical Levels to Watch

• Nifty Support: 23,400

• Nifty Resistance: 23,750–23,800

• Sensex Support: 77,100

• Sensex Resistance: 78,000–78,200

As global market conditions evolve, investors should stay cautious while looking for buying opportunities in select sectors.

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