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Informist, Tuesday, Mar. 11, 2025

By Akash Mandal

MUMBAI – The Nifty 50 ended slightly higher and the Sensex ended flat Tuesday, recovering from an early fall as investors bought stocks following a sharp correction in valuations over the past few months. The benchmark indices had opened lower because of a sell-off globally due to concerns about recession in the US. IndusInd Bank nosedived more than 27%, with its market capitalisation wiped out by more than INR 190 billion, after the private sector bank reported accounting discrepancies in its foreign exchange derivatives portfolio.

The share price of IndusInd Bank is back to the levels last seen in November 2020. Late Monday, the bank said an internal review had shown accounting discrepancies in its foreign exchange derivatives portfolio. The review estimated an adverse impact of about 2.35% on the bank's net worth as on Dec. 31. This hit, coupled with accelerated provisions on the microfinance portfolio, will push the bank into losses in the March quarter, Emkay Global Financial Services said in a report.

Multiple brokerages have downgraded the stock and cut the target price. Nuvama Institutional Equities has downgraded the stock to 'reduce' and cut the target price by 33% to INR 750. Emkay Global has downgraded the stock to 'add' and reduced the target price by 22% to INR 875. Prabhudas Lilladher has downgraded the stock to 'hold', trimming its target price by 29% to INR 1,000.

The Nifty 50 ended at 22497.90 points, up 37.60 points or 0.2%, and the Sensex closed at 74102.32 points, down 12.85 points. Both the indices had opened 0.5% lower due to concerns of a slowdown in the US on fears of US tariffs on other countries pushing inflation higher.

Global brokerage Citi downgraded US equities to 'neutral' from 'overweight'. "The hiatus in their (US stocks') ability to outperform has become more obvious," Reuters reported Dirk Willer, global head of strategy, Citi, as saying. On Monday, the US markets ended sharply lower, and most Asian indices ended lower Tuesday tracking them. On the other hand, the Chinese market recovered and ended higher after Citi upgraded equities to 'overweight' from 'neutral'.

Broader market indices ended mixed with mid-cap indices ending 0.5-1.0% higher and small-cap indices ending around 1% lower. Nearly 63% of the stocks trading on the National Stock Exchange ended in the red. The underlying negative sentiment was evident from the fact that 200 stocks fell to their 52-week lows during the session. On the other hand, 14 stocks rose to 52-week highs.

Among sectoral indices, the Nifty IT index came off lows but was still among the worst hit with Infosys and Wipro ending around 2% and 1% lower, respectively. During early trade, the index was the worst hit among sectoral indices, tracking the sharp 4% fall overnight in the technology-heavy index Nasdaq Composite. Investors are concerned that US President Donald Trump's inflationary trade tariffs would restrict further cuts in interest rates by the Federal Reserve, impacting spending on information technology in the US, which would affect the revenues of Indian IT companies. Nuvama Institutional Equities had Monday downgraded the domestic IT sector to 'underweight' from 'neutral' on concerns about expensive valuations and global uncertainty.

On the other hand, the Nifty Realty index was the top gainer among sectoral indices, ending sharply higher after three straight days of decline. The gains made Tuesday have helped recover losses made over the past three sessions. The Phoenix Mills, Macrotech Developers, and DLF ended 4-7% higher. The Nifty Oil & Gas index also ended higher, with Bharat Petroleum Corp., Castrol India, and Indian Oil Corp. gaining around 3% each. 

Shares of BSE extended losses for the fifth straight day, declining over 14% over that period. The stock Tuesday ended nearly 5% lower. It has been falling due to concerns about a fall in its market share. BSE's market share is expected to fall to 18% from 22% in February, with NSE changing the day of its derivatives contracts' expiry to Monday from Thursday, Nuvama Institutional Equities said in a report Monday. Nuvama Wealth Management, Triveni Turbine, and Zensar Technologies ended 6-7% lower and were among the worst hit in the Nifty 500.

Tata Communications rose nearly 9% and was the top gainer in the Nifty 200 after ICICI Securities upgraded the stock to 'buy' from 'hold' and upgraded the target price to INR 1,840 from INR 1,690. Bharti Hexacom surged late in the day and ended over 8% higher after Motilal Oswal Financial Services initiated coverage on the stock with a target price of INR 1,625. Indegene, Chennai Petroleum Corp., and Bharti Hexacom ended 7-14% higher and were among the top gainers in the Nifty 500.

* Of the Nifty 50 stocks, 29 rose and 21 fell

* Of the Sensex stocks, 15 rose and 15 fell

* On the NSE, 1,041 stocks rose, 1,850 fell, and 67 were unchanged

* On the BSE, 1,466 stocks rose, 2,506 fell, and 120 were unchanged

* Nifty Realty: up 3.6%; Nifty Oil & Gas: up 1.2%; Nifty Private Bank: down 1.4%

BSE                                               NSE

Sensex: 74102.32, down 12.85 points               Nifty 50: 22497.90, up 37.60 points or 0.2%

End

Edited by Ashish Shirke

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