Closing Bell: Benchmarks rebound; Trump tariff hit auto stocks, PSBs outrun

Stock Market Closing Bell, Thursday, March 27, 2025: Indian equity markets posted a rebound on Thursday, primarily led by sustained foreign fund inflows and the buying in blue-chip stocks. Benchmarks BSE Sensex and Nifty50, which ended their 7-day winning streak yesterday, rebounded to settle higher, largely led by buying in PSU Banks, Oil & Gas, and financial services stocks.  Auto stocks, on the other hand, witnessed a sell-off after US President Donald Trump announced a 25 per cent tariff on imported cars and key auto parts, effective April 3. The heat was seen among pharmaceutical stocks, which extended their losing streak to a third consecutive day.

 

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The shift in FII stance, as Ajit Mishra – SVP, research, Religare Broking, said, coupled with strength in banking and financial majors and rotational support from other heavyweights, is sustaining the positive sentiment. "However, news related to US tariffs continues to trigger occasional volatility. Traders should look past the short-term choppiness during this consolidation phase and focus on selective stock opportunities," Mishra said.

 

On Thursday, the 30-share Sensex, after scaling an intra-day high of 77,747.46, settled at 77,606.43, up 317.93 points or 0.41 per cent from its previous close. The NSE Nifty50 settled with gains of 105.10 points or 0.45 per cent at 23,591.95. 

 

Hero MotoCorp, Bajaj Finserv, IndusInd Bank, Adani Enterprises, and Trent were the top gainers among the Nifty50 constituent stocks, ending higher by up to 3.44 per cent. Conversely, the top laggards included Tata Motors, Sun Pharma, Eicher Motors, Kotak Mahindra, and Bharti Airtel, which ended down by up to 5.57 per cent.

 

Buying was seen across smallcap counters among the broader markets, as the Nifty Smallcap100 index settled higher by 1.15 per cent. Among sectors, barring Nifty Auto and Pharma, all the other sectoral indices settled higher on Thursday. Nifty Auto and Nifty Pharma indices ended lower by 1.04 per cent and 0.40 per cent, respectively.

 

That said, PSU Banks emerged as star performers on Thursday, outperforming others, as the Nifty PSU Bank index settled with gains of 2.50 per cent, led by Bank of Baroda and Punjab National Bank.

 

Meanwhile, the volatility index, India VIX, cooled off by 1.26 per cent to 13.30, indicating a decline in market volatility. 

 

Vinod Nair, head of research at Geojit Investments, attributed the resilience in the broader markets to expectations of double-digit earnings growth in FY26. This growth is driven by easing inflation and a downward trend in interest rates, which are anticipated to improve domestic fundamentals.

 

"Attention is now focused on the US-India trade meeting, which commenced on Wednesday, aiming to provide greater clarity on the bilateral trade agreement between the two nations," said Nair.

 

Nifty eyes 24,000

Technically, on the daily chart, Nifty found support around the 100-Days Exponential Moving Average (100-DEMA), placed near 23,390, and formed a green candle, indicating strength, said Hrishikesh Yedve, AVP technical and derivatives research at Asit C. Mehta Investment Interrmediates.  However, on the upside, the index is still facing resistance near the 23,800–23,810 levels. 

 

If the index sustains above 23,810, Yedve believes, the rally could extend towards 24,000–24,080 levels, where its 200-Days Simple Moving Average (200-DSMA) is placed. "Traders are advised to follow a 'buy on dips' strategy in Nifty as long as it holds above the 100-DEMA support of 23,390," Yedve said.  According to Rupak De, Senior Technical Analyst at LKP Securities, option position buildup for Nifty50 indicates an expiry around 23,600. On the daily chart, the index found support near the 100 exponential moving average (EMA).  De expects the short-term sentiment to remain positive, with a potential move toward 23,800 if the index sustains above 23,600. "On the downside, support is placed at 23,400," De said.