The sell-off in the Indian stock market further intensified in Friday’s session, March 13, with key averages falling over 2% and ending at the day’s low as rising crude oil prices kept risk-off sentiment elevated, triggering concerns that it could impact corporate earnings and delay interest rate cuts.
Adding to the challenges, overseas investors have remained net sellers in every session in March so far, which has not only kept the market under pressure but also pushed the Indian rupee to multiple record lows against the US dollar, making imports more costly for domestic consumers.
After losing 1% in the previous session, the Nifty 50 dropped another 2.06%, taking its weekly decline to 5.30%, marking the biggest weekly fall in four years. The S&P BSE Sensex also tumbled 1.92%, ending at the day’s low of 74,587.
In this week alone, the index has crashed 4,335 points, the largest such fall since January 2021. The broader markets mirrored the same trend, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices falling over 2.5% each.
All sectoral indices closed in the red, with the Nifty Metal bearing the brunt as it fell 4.82%, while Nifty PSU Bank and Nifty Auto also plunged sharply by 3.72% and 3.60%, respectively. Barring the Nifty FMCG index, all sectoral indices closed with losses of over 1%.
Meanwhile, export-related stocks were sold off heavily after reports emerged that India may put a trade deal with the United States on hold. News agency Reuters reported that India will hold off on signing the trade agreement, citing sources.
The Donald Trump administration has launched fresh trade investigations against several trading partners, with India being one of them.
Auto, EMS stocks lead sharp decline as over 100 Nifty stocks fall over 4%
Over 100 Nifty constituents closed the trade with losses of over 4%, with auto and ancillary stocks leading the declines as stocks such as Craftsman Automation and CEAT ended the session with deep cuts of over 9%.
All EMS stocks, including Amber Enterprises, Kaynes Technology, PG Electroplast, Dixon Technologies, and Syrma SGS Technology, fell between 7% and 3.42%. Heavyweight Larsen & Toubro was also hit hard as the stock tumbled 7.5% to ₹3,439 apiece, which pushed its market capitalisation below ₹5 lakh crore.
Stocks including PCBL Chemical, Adani Total Gas, Aditya Birla Sun Life AMC, Wockhardt, Jindal Steel & Power, RR Kabel, Blue Star, Hindalco Industries, Force Motors, Can Fin Homes, Reliance Power, Natco Pharma, Hindustan Copper, and Bharat Forge all have declined over 6%.
PSU banking stocks, which had acted as safe havens in recent months, also failed to escape the sell-off, as 10 out of the 12 constituents of the Nifty PSU Bank index fell over 3%, with UCO Bank leading the losses with a 4.7% decline.
Looking at other auto stocks, Bharat Forge, Samvardhana Motherson, UNO Minda, Sona BLW Precision Forgings, Ashok Leyland, Exide Industries, Tube Investments of India, and Bosch have also fallen over 3%.
Select stocks defy market slump
In a broad-based sell-off, a few stocks managed to stay afloat, with L&T Technology Services gaining 9.6% to ₹3,430 apiece, while ACME Solar Holdings also rallied 6.5% to ₹255.6 apiece.
IFCI, Authum Investment & Infrastructure, and Cholamandalam Financial Holdings were among the stocks from the Nifty 500 pack that gained 6.5%, 6%, and 5.6%, respectively.
Other stocks such as Syngene International, Niva Bupa Health Insurance Company, Muthoot Finance, and Atul Ltd. also closed with gains ranging between 2.8% and 4.2%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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