Nifty treads water after a volatile day; IT stocks under pressure
Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets—both in India and globally.
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Market Overview
Nifty opened with a 40-point gap up and quickly touched the day’s high of 22,577.40 within the first five minutes. However, it soon fell by 100 points, continuing to decline with small bounces in between. The index hit its intraday low of 22,329.55 at 12:40 PM, before rebounding 110 points to reach 22,440. Further volatility followed, but in the final hour, markets recovered further, eventually closing flat at 22,470.50, down 0.12%.
The IT sector was the biggest drag on the market, weighed down by a sell-off in Nasdaq and recession fears in the U.S., which impacted the sector's outlook.
Looking ahead, Nifty’s future direction will largely depend on whether it retests the higher resistance zone around 22,800 or moves lower toward the 22,200–22,000 range. A key factor to watch will be whether U.S. markets stabilize or if the current decoupling between Indian and U.S. markets continues in the short term.
Broader Market Performance:
The broader markets continued to underperform the headline indices, reflecting weak market breadth. Of the 2,963 stocks traded on the NSE, 1,030 advanced (slightly lower than 1,041 yesterday), while 1,854 declined (compared to 1,850 in the previous session). Meanwhile, 79 stocks remained unchanged.
Sectoral Performance:
The top gaining sector for the day is Nifty Auto, which closed at 20,783.70, marking a 0.48% increase. It was followed closely by Nifty Pharma with a 0.45% gain and Nifty Bank, which rose by 0.42%.
On the losing side, Nifty IT saw the biggest decline, dropping 2.91% to close at 36,310.65. Other significant losers include Nifty Realty (-1.64%), Nifty Media (-1.53%), and Nifty PSU Bank (-1.08%)
In total, six sectors closed in green, while six sectors ended in red, indicating a mixed performance across the board.
Note: The above numbers for Commodity futures were taken around 6 pm. NSE has not released today’s FII-DII data yet. Here’s the trend from the last 5 days:
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 13th March:
The maximum Call Open Interest (OI) is observed at 22,600, followed by 22,500, indicating strong resistance at these levels. First strong resistance levels shall most likely be at 22,600, followed by 22,800.
The maximum Put Open Interest (OI) is at 22,300, followed by 22,000, suggesting potential support at 22,300, with additional support at 22,200.
Note: OI is subject to multiple interpretations, but generally, an increase in the call OI indicates resistance in a falling market, and an increase in the put OI indicates support in a rising market.
Source: Sensibull
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What’s happening in India
India's inflation rate dropped to 3.62% in February 2025, the lowest in seven months, falling below the RBI’s 4% target. The decline was driven by food price deflation and lower fuel costs, supporting the central bank’s rate-cutting stance. Dive deeper
Adani Group won the ₹36,000 crore bid for Motilal Nagar’s redevelopment, its second major Mumbai project after Dharavi. Covering 143 acres in Goregaon, the project will provide modern housing while MHADA retains control. Dive deeper
SEBI has mandated completing rights issues within 23 working days from board approval, effective April 7, 2025. The move aims to streamline fundraising by reducing delays and ensuring automated application validation. Rights issues will remain open for a minimum of seven days and a maximum of 30 days, with stock exchanges and depositories required to implement necessary monitoring systems. Dive deeper
The government plans to sell a 2-3% stake in LIC in multiple tranches during FY26 to meet SEBI’s 10% public shareholding mandate by 2027. The move follows its 3.5% stake sale via LIC’s 2022 IPO. Dive deeper
Life insurers’ new business premium (NBP) fell 11.58% YoY to ₹29,986 crore in February, marking the fourth consecutive monthly decline. LIC’s NBP dropped 22% to ₹15,514 crore, while private insurers saw a 3.24% rise to ₹14,472 crore. However, NBP for April-February grew 5.71% to ₹3.36 lakh crore. Dive deeper
PhonePe reported surpassing 60 crore registered users as it prepares for its IPO, coinciding with its 10th anniversary. The company has expanded into areas such as wealth management and e-commerce, with a digital payments network covering 4 crore merchants. Dive deeper
SEBI granted exemptions for the listing of IL&FS Group's Roadstar Infra Investment Trust (InvIT), marking the first instance of an InvIT being used for stressed asset resolution. Unlike typical InvITs, it did not raise funds but issued units to creditors against IL&FS debt. The sponsor is subject to a three-year lock-in, and retail investors currently have no participation scope. Dive deeper
Bharti Airtel has transferred its 69.94% stake in Airtel Payments Bank to its subsidiary, Airtel Limited, as part of an internal reorganization. The restructuring has received necessary regulatory approvals and does not impact the bank’s ownership. Dive deeper
HDFC Bank repurchased ₹7,000 crore of high-cost bonds to improve its 110% CD ratio post-merger with HDFC. The move aims to lower borrowing costs and replace high-cost debt with deposits. More buybacks are expected to support margins. Dive deeper
Aditya Birla Capital infused ₹300 crore into its housing finance arm via a rights issue to support growth and leverage. The mortgage lender also secured ₹830 crore from IFC to provide home loans and fund MSMEs, especially women-led enterprises. Dive deeper
Jio partnered with SpaceX to offer Starlink broadband in India, pending regulatory approvals. The agreement aims to expand Jio’s offerings, complement SpaceX’s services, and improve rural connectivity through Jio’s retail and online channels. Dive deeper
Vedanta reduced its net debt by $550 million by repaying a $900 million high-cost loan, saving $90 million annually in interest. The repayment was funded through a $1 billion QIP and a new $350 million lower-cost facility. Dive deeper
What’s happening globally
Brent crude neared $70 per barrel, supported by a weaker US dollar and reduced oversupply forecasts. However, concerns over a tariff-induced slowdown and rising US crude stocks capped gains. Dive deeper
Gold held above $2,910 per ounce, supported by safe-haven demand and a weaker US dollar. Uncertainty over US tariffs and recession fears drove buying, while geopolitical risks eased after the US resumed aid to Ukraine following a ceasefire agreement. Dive deeper
Aluminium futures climbed to $2,720 per tonne, hitting a nine-month high due to supply constraints and new U.S. tariffs. While the U.S. maintained a 25% tariff on most aluminium imports, it refrained from raising levies on Canada. Meanwhile, China's record 2024 output is expected to slow amid production caps and weaker exports. Dive deeper
The US annual inflation rate likely eased to 2.9% in February from 3% in January, while monthly CPI rose 0.3% vs. 0.5% prior. Core inflation is expected to slow to 3.2% YoY and 0.3% MoM. Dive deeper
U.S. job openings rose to 7.74 million in January, exceeding expectations, with gains in retail, finance, and healthcare. Hires increased slightly, while separations climbed to 5.25 million. Dive deeper
Germany’s 10-year Bund yield surged past 2.9%, its highest since June 2011, amid ongoing talks over increased state borrowing. Meanwhile, U.S. tariffs on European steel and aluminium took effect, triggering EU retaliatory measures, while Ukraine signalled readiness for a 30-day ceasefire. Dive deeper
Spain's retail sales grew 2.2% YoY in January 2025, down from 4% in December. Non-food sales slowed to 4.4%, while food, beverages, and tobacco rose 3%. Seasonally adjusted monthly sales fell 1.4% after a 1.5% rise in December. Dive deeper
Elon Musk appealed to restore his $56 billion Tesla pay package, arguing that a lower court's ruling was legally flawed. He claimed the decision ignored shareholder approvals and misapplied legal standards. Dive deeper
Nissan CEO Makoto Uchida will step down on April 1, with Chief Planning Officer Ivan Espinosa taking over as the company’s fourth CEO in eight years. The leadership change follows Nissan’s failed merger talks with Honda and a 78% drop in Q3 operating profit. Renault expressed confidence in Espinosa’s ability to strengthen Nissan’s turnaround efforts. Dive deeper
Donald Trump backed down from imposing 50% tariffs on Canadian steel and aluminium imports after Ontario suspended its 25% surcharge on US power exports. However, the US will still enforce 25% tariffs on Canadian metals, citing domestic industry protection. Dive deeper
Management chatter
In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.
Stephen Schwarzman, CEO of Blackstone on Investing 100 Billions dollars in India going forward
"When we decided to come here in 2005, we announced that we will put $1 billion here. People have probably forgotten that 20 years ago, it was a huge number. We were on the front pages of all the newspapers. Now, we are many times of what we expected to be. This is because the country is such a great place to operate," - Link
P.B. Balaji, CFO of Tata Motors
Jaguar Land Rover (JLR) will meet its fourth quarter EBIT margin guidance of 10% will also turn net debt free by the end of the financial year.
Premiumisation of JLR and Commercial Vehicles business in India is progressing well, although the Passenger Vehicle needs an improvement. - Link
Calendars
In the coming days, we have the following significant events and corporate actions:
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Could you please adjust the heat map to use a 0-point reference and a two-color gradient? The current color scheme is making it difficult to interpret. Thank you for your work