Stock market today: Sensex, Nifty 50 end volatile trade flat; smallcaps extend gains

Stock market today: Indian markets ended Friday’s trading session with mild gains, outperforming global peers and Asian markets, which tumbled after fresh U.S. economic data indicated signs of slowing growth amid escalating global trade tensions. 

However, concerns over a slowdown in the world’s largest economy triggered a sell-off in domestic technology stocks, while oil & gas and metal stocks bucked the trend amid softening crude oil prices and a declining U.S. Dollar Index.

The Nifty 50 closed the session 0.03% higher, ending the week with a 1.93% gain, its first weekly gain in the last three weeks. Meanwhile, the Sensex dropped 0.08% today but surged 1.55% for the week, snapping its three-week losing streak.

The broader market ended mixed, with the Nifty Midcap 100 index losing 0.32% to close at 49,190, while the Nifty Smallcap 100 index extended its rally for the fourth consecutive trading session, gaining 0.67% to finish at 15,504. However, both midcap and smallcap indices closed the week with the Nifty Smallcap 100 index gaining 5.47%, outperforming the frontline indices.

This week has been marked by retaliatory actions, business warnings of price hikes, and sharp fluctuations in global markets. With concerns over an escalating trade war, investors and business leaders remain on edge, closely tracking rapid developments from the Donald Trump administration.

Trump imposed 25% tariffs on Canada and Mexico on Tuesday but exempted some goods covered under the North American trade agreement (USMCA) on Thursday, with the exemption lasting until April 2. However, Thursday’s tariff exceptions did not apply to those imposed on China.

Meanwhile, both China and Canada imposed tariffs on U.S. goods as a retaliatory measure. China is standing firm, stating that it is prepared to fight “any type of war” with the U.S. Meanwhile, Trump is poised to enact “reciprocal tariffs” on April 2 against foreign nations that impose import taxes on U.S. goods, with India being one of the countries exposed to these tariffs. 

Sectoral Watch: Media stocks shine, realty struggles

Among sectoral indices, Nifty Media emerged as the top gainer, ending the session with a 1.83% gain, while softening crude oil prices supported a rally in oil and gas stocks, pushing the Nifty Oil & Gas index 0.55% higher. The Nifty Metal index also extended its gains for the fifth consecutive trading session amid weakness in the U.S. Dollar Index, ending 0.43% higher.

Other sectoral indices, such as Nifty Auto and Nifty PSU Bank, also ended in the green. On the losing side, Nifty Realty stood as the top sectoral laggard with a 1.19% drop, followed by Nifty IT, which declined 0.85%. Meanwhile, Nifty Bank and Nifty Pharma also ended lower, with losses of 0.27% and 0.22%, respectively.

Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, “The global market is experiencing a heightened uncertainty due to US tariff impositions and counter threats from its peers. This ambiguity has led to increased risk aversion and diminished appeal of equities. EMs have been particularly affected, experiencing significant outflows.”

“Lately, S&P 500 index is showing signs of a deeper correction, reflecting concerns about the potential impact of tariffs on the US economy. In contrast, Indian markets have demonstrated resilience off late despite looming trade war. While a recovery in corporate earnings could significantly improve the domestic sentiments. Investors could go overweight on large caps given stability in earnings and increasing valuation comfort,” Vinod Nair stated.

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, “The India Nifty remained volatile within a narrow range, closing with a small-bodied candle on the daily chart. Significant put writing was seen at the 22,300 strike, while decent call writing was visible at the 22,800 strike. The sentiment remains positive, with the potential to reach higher levels in the short term. On the higher end, immediate resistance is seen at 22,700–22,750. On the lower end, support is placed at 22,400, below which the index may lose momentum.”

Ajit Mishra, SVP, Research, Religare Broking, said, “Nifty 50 is now approaching its immediate resistance at 22,700 and will require fresh catalysts to break past this level. A potential trigger could be renewed buying interest in banking heavyweights, which have largely stayed on the sidelines during the recent rebound.”

“However, global uncertainties may weigh on sentiment and disrupt this recovery attempt. Given the mixed signals, we recommend maintaining a positive yet cautious stance, with a focus on prudent position sizing,” he further added. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.