The Indian stock market witnessed a volatile session on March 11, starting the day in deep red before recovering to close marginally higher. Investors were initially rattled by Wall Street’s overnight selloff, leading to a weak opening for Indian indices. However, selective buying in realty, telecom, and oil & gas stocks helped benchmark indices erase losses by the closing bell.

Market Overview

Nifty 50 ended the day at 22,500, while the Sensex hovered near 74,100 after recovering from sharp early losses. The broader market, however, remained mixed, with the BSE Midcap index gaining 0.7% and the BSE Smallcap index slipping 0.7%. IndusInd Bank dragged the banking sector lower, while realty stocks led the recovery.

Factors Influencing Market Movement

• Global Cues: Fears of a US recession and escalating trade tensions led to a selloff in global markets, weighing on Indian equities.

• Midcap and Smallcap Valuations: According to analysts at Nuvama, the recent correction in small and midcap stocks has not fully adjusted valuations, making them prone to further downside.

• Sector Performance: Realty and telecom stocks saw strong gains, while IT and banking stocks remained under pressure.

Top Gainers

1. Macrotech Developers (Lodha) (+5%)

Macrotech Developers surged over 5% after the company finalized a Rs 279 crore deal to acquire a 3.4-acre land parcel in Mumbai’s Jogeshwari West suburb from Unichem Laboratories. This move is expected to bolster Lodha’s ongoing expansion plans in Mumbai’s real estate market.

2. Godrej Properties (+3%)

The real estate sector saw a strong rebound, with Godrej Properties climbing over 3%. This rally helped the Nifty Realty index gain nearly 3%, snapping a three-day losing streak.

3. Sun Pharma (+3%)

Sun Pharma shares rose more than 3% after ICICI Securities upgraded the stock to a ‘Buy’ rating. Investors remain optimistic about Sun Pharma’s recent $355 million acquisition of Nasdaq-listed Checkpoint Therapeutics.

4. Bharat Electronics Ltd (BEL) (+2%)

Bharat Electronics Ltd (BEL) shares gained 2% following the announcement of fresh orders worth Rs 843 crore, bringing total order inflows for FY25 to Rs 14,567 crore. The contracts include radar upgrades, RF seekers, air traffic management systems, and vessel monitoring solutions.

5. ICICI Bank (+2.5%)

ICICI Bank shares advanced 2.5%, offering some relief to the banking sector amid broader weakness. However, the Bank Nifty index continued its two-session decline, weighed down by IndusInd Bank’s losses.

Top Losers

1. IndusInd Bank (-26%)

IndusInd Bank suffered a historic 26% crash, marking its worst single-day fall ever. Concerns over accounting irregularities and governance issues drove heavy selling, with the stock touching Rs 670, its lowest level since November 2020.

2. 360 One WAM (-2.88%)

360 One WAM continued its downward spiral, losing nearly 3% on March 11. The stock has shed over 10% in just two sessions, as weak retail participation and prolonged equity market declines weighed on investor sentiment.

3. Angel One (-2.84%)

Angel One shares declined for the third consecutive session, dropping 2.84%. The fall came after Goldman Sachs cut its price target for the second time in a week, reducing it to Rs 4,230 per share while maintaining a ‘Neutral’ rating.

4. Gensol Engineering (-11 Sessions of Losses)

Gensol Engineering extended its losing streak to 11 sessions, hitting a multi-month low. Multiple ratings downgrades and loan servicing concerns have led investors to offload the stock, resulting in continued weakness.

5. Mahindra & Mahindra (M&M) (-3%)

Mahindra & Mahindra (M&M) shares dropped over 3% intraday before recovering slightly. The stock had hit a 52-week high on February 10, but remains above its 52-week low of Rs 1,789, recorded on March 15 last year.

Market Outlook

While benchmark indices recovered from early losses, volatility remains high, with investors closely monitoring global economic trends, including US recession fears and ongoing geopolitical tensions. Analysts suggest exercising caution in small and midcap stocks, given their elevated valuations. Meanwhile, the banking sector is expected to remain under pressure as IndusInd Bank’s governance concerns continue to weigh on sentiment.

With sector rotation in play, experts believe that defensive sectors like pharma and real estate could continue to see buying interest in the coming sessions.

The Upcoming IPOs in this week and coming weeks are Paradeep Parivahan, Divine Hira Jewellers.

The Current active IPO are Super Iron Foundry, PDP Shipping & Projects.

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