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Market Update

Nifty : 22,553.35 -242.55 (-1.06%)

Sensex : 74,454.41 -856.65 (-1.14%)

* The equity benchmarks, Nifty and Sensex, both fell over 1%, with Sensex hitting an 8-month low below the 75,000 mark, amid intense selling in IT and metal stocks, tracking the weak trends in US markets. The decline was further driven by persistent foreign fund outflows and concerns about US tariffs. The Sensex dropped 856 points, or 1.1% to close at 74454, while Nifty fell 242 points, or 1%, closing at 22,553.

* On the positive side, Nifty pharma and defense stocks saw fresh buying activity. Nifty is nearing its longest losing streak in 28 years, potentially marking a fifth consecutive monthly decline, a rare occurrence last seen in 1996.

* This prolonged weakness is largely attributed to heavy selling by foreign institutional investors (FIIs), who have offloaded stocks worth over Rs 2 lakh crore since October 2024, as the weaker rupee makes emerging markets less attractive. The US market also declined by 2% on Friday due to weak PMI and home sales data, which impacted global markets. However, a silver lining emerged from the domestic market, where India's February Services PMI reached a 17-month high above 60, and the hope that the RBI may cut interest rates during the April policy meeting boosted sentiment.

* The Nifty IT index was the worst performer, dropping more than 2.7% due to concerns about a potential slowdown in the US economy. US Services PMI fell to a 17-month low below 50, signaling possible economic weakness.

Technical Outlook:

* Nifty index opened with a gap down of over 180 points near the 22600 zone, breaking out of its range from the last 8 trading sessions. Throughout the day, the index traded within a tight 100 point band with swings occurring within that range and closed with losses of around 240 points.

* On the daily chart, it formed a bearish candle with longer upper shadow indicating strong selling pressure at higher levels. Now till it holds below 22800 zones, weakness could be seen towards 22400 then 22250 zones whereas hurdles are placed at 22700 then 22800 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.96% at 22604 levels. Positive setup seen in Laurus Labs, Bata India, Berger Paint, Indian Bank, ABB India, CG Power, Manappuram Finance, Eicher Motors, Union Bank, Petronet and Indigo while weakness in Naukri, National Aluminium, LTI Mindtree, LTTS, Angel One, Hudco, Escorts, Wipro, Oil India, HCL Tech, Mphasis and NHPC.

* On option front, Maximum Call OI is at 23000 then 22700 strike while Maximum Put OI is at 22600 then 22000 strike. Call writing is seen at 22600 then 22700 strike while Put writing is seen at 22600 then 22500 strike. Option data suggests a broader trading range in between 22000 to 23000 zones while an immediate range between 22400 to 22800 levels.

* EPL Founder Epsilon to Sell 25% Stake to Indorama for $221M - EPLfounder Epsilon Bidco has signed an agreement to sell 24.9% in co. to Indorama Netherlands for Rs1910cr ($221 million). Epsilon will sell 79.5 million shares of EPL to Indorama at Rs240 each. Epsilon holds a 51.4% stake in EPL.

* Veranda Learning Solutions acquisition of BB Virtuals and Navkar Digital Institute Pvt – Company has acquired 40.41% stake in BB Publications and acquired 65% stake in Navkar Digital Institute in order to further strengthen the company's position in India's commerce education space.

* Adani Power Says Vidarbha Lenders Approve Co.’s Resolution Plan - Vidarbha Industries Power ’s creditors committee has approved a resolution plan submitted by Adani Power. Adani Power has received a letter of intent from the resolution professional. Vidarbha owns and operates a 600 MW thermal power plant in Nagpur, Maharashtra.

* Coal India signs deal to form JV of Électricité de France – Company has entered into a non-binding shareholders agreement with EDF India, a wholly-owned subsidiary of France-based Électricité de France, to form a joint venture. The joint venture will be established to undertake pump storage projects along with other renewable energy projects in India and neighboring countries.

* Glenmark Pharma - Company to enter settlement with Humana, Centene, Kaiser for $7 Million. Settlement with Plaintiffs makes clear that company denies every allegation made against it.

* Havells To Enter EV Charging Market In Next Six Months – Company will enter the electric vehicle charging market in the next six months as the company eyes to tap into the lucrative sunrise sector set to buzz after the entry of Elon Musk's Tesla.The company will tap automakers, charging infrastructure, consumers and real estate developers, said Vivek Yadav.

Global Market Update

* European Market - European stocks edged lower, dragged down by electrification stocks on fears of curtailed data centers spending by Microsoft Corp. German mid-caps rallied after conservative leader Friedrich Merz emerged as the winner in Sunday’s election. France Index declined 0.5% WHILE Germany Index advance 0.2% .

* Asian Market - Asian shares were mixed on Monday after U.S. stocks fell sharply as reports showed the economy may be suffering as consumers and businesses fret over President Donald Trump’s policies. China, Taiwan, south Korea and Hong Kong declined up to 0.5%. Japan market closed today.

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