Market navigates volatility amid trade tensions and F&O expiry

Markets traded with cautious optimism on Thursday afternoon, displaying resilience despite escalating global trade tensions and the approaching March futures and options expiry. The Sensex climbed 336.10 points or 0.43 per cent to 77,624.60, while the Nifty advanced 105.75 points or 0.45 per cent to 23,592.60.

Sectoral indices showed mixed performance, with the Nifty Financial Services index emerging as a standout performer, rising 0.92 per cent to 25,058.90. The Nifty Bank index also gained 0.77 per cent, indicating underlying strength in the financial sector despite broader market uncertainties.

Bajaj Finserv led the gainers on the NSE, surging 2.29 per cent to 1,988.00, followed by Hero MotoCorp with a 2.22 per cent increase to 3,727.05. HDFC Life and Larsen & Toubro also posted robust gains of 2.03 per cent and 1.83 per cent respectively, providing support to the market’s upward trajectory.

However, the market faced significant headwinds from select counters, with Tata Motors experiencing a sharp decline of 5.58 per cent following the U.S. announcement of a 25 per cent tariff on imported cars. Sun Pharma and Dr. Reddy’s Laboratories also witnessed notable corrections, dropping 1.88 per cent and 1.24 per cent respectively.

Market breadth remained negative, with 2,278 stocks declining compared to 1,589 advancing. The broader market showed signs of pressure, with 359 stocks hitting 52-week lows against only 46 reaching 52-week highs. Notably, 346 stocks were in the lower circuit, suggesting underlying market stress.

Foreign institutional investors (FIIs) continued their net buying streak, injecting over ₹20,000 crore in the past five sessions, providing a crucial support mechanism for the market. Technical indicators, however, hinted at potential bearish trends, prompting analysts to recommend a cautious approach to investment strategies.

Investors remained vigilant, balancing expectations of potential market movements with the ongoing geopolitical and macroeconomic uncertainties.