Nifty Snaps 4-Day Gaining Streak As Broader Market Correction Continues

Indian stock markets witnessed trading pressure on March 10 as the benchmark indices closed in the red. The Nifty 50 snapped its four-day gaining streak and closed in the red down by 92.2 points or 0.41 per cent at 22,460.3 levels.

The 30-share Sensex extended losses for the second straight session on March 10 as it closed in the red at 74,115.17 levels down by 217.41 points or 0.29 per cent.

Broader Market Correction Continues

The broader market indices also witnessed continued correction on March 10. The Nifty SmallCap 100 index ended its four-session winning streak as it closed 1.97 per cent lower at 15,198.15 levels. On the other hand, the Nifty MidCap 100 continued to correct as the index closed in the red for the third straight session at 48,440.1 levels down by 1.53 per cent. Notably the two broader market indices have continued to remain in bear territory, with Nifty MidCap 100 trading 20.49 per cent lower than its 52-week high of 60,925.95 and the Nifty SmallCap 100 trading 22.91 per cent lower than its 52-week high of 19,716.2.

Top Nifty Gainers And Losers

Power Grid Corporation of India Ltd, Hindustan Unilever, Infosys, Nestle India and ITC gained the most among Nifty stocks. Shares of Power Grid Corporation gained the most as they closed 3.02 per cent higher at Rs 271.25 apiece on the NSE. Earlier in the day the stock managed to gain more than 4.15 per cent to hit an intraday high of Rs 274.25 apiece.

Hindustan Unilever Ltd shares also gained 2.83 per cent to hit an intraday high after the company’s CEO Fernando Fernandez said in a fireside chat with Barclays that the company’s India business will see an acceleration in sales growth in the second half of 2025. Fernandez said that the growth is slated to occur backed by the Reserve Bank’s interest rate cuts and the Centre’s fiscal stimulus measures. The stock also emerged as the biggest gainer among all constituents of the Nifty FMCG index which closed 0.22 per cent higher. Shares of Hindustan Unilever closed at Rs 2,246.5 apiece up by 1.9 per cent on the NSE.

Other Nifty gainers such as Nestle India, Infosys Ltd and ITC Ltd closed higher by up to 0.83 per cent. On the other hand, the top constituents of the Nifty50 such as private sector lender HDFC Bank Ltd, ICICI Bank Ltd and Reliance Industries Ltd closed lower, dragging the index into the red zone.

Oil and Natural Gas Corporation of India Ltd emerged as the top loser among all Nifty stocks as it closed lower by more than 4 per cent at Rs 223.29 apiece on the NSE. Earlier today the stock slipped nearly 5 per cent to hit an intraday low of Rs 222.48 apiece on the NSE.

Other stocks which lost significantly on March 10 included Tata Group company Trent Ltd. Trent’s shares closed lower by 4.11 per cent at Rs 4,794.45 apiece. The stock slumped more than 4 per cent to hit an intraday low of Rs 4,787.75 apiece on the NSE.

Shares of Nifty50 constituents such as private sector lender IndusInd Bank Ltd, Bajaj Auto and Eicher Motors also declined significantly. The three stocks closed up to 3.71 per cent lower on the NSE on March 10.

Several factors contributed to the decline seen in the benchmarks on March 10. Towards the close, the broader market indices also witnessed a lot of pressure with smallcaps and midcaps facing the heat.

Factors such as a sharp decline in the value of the Indian rupee against the US Dollar dragged markets lower. The Indian rupee witnessed weakness amid a strong demand to buy dollars at the daily reference rate. On March 10, the rupee declined 0.4 per cent to 87.26 against the U.S. Dollar.

Other factors included the continued selling of Indian equities by Foreign Institutional Investors who remained net sellers. FIIs have sold Indian equities worth Rs 15,501.57 crore so far in March. The FII sell-offs have persisted since October 2024 with the foreign institutional investors paring their stake in Indian equities consistently every month.

An increase in volatility on account of uncertainty continued to drag the market sentiment. Several macroeconomic factors such as rising US unemployment rates and the looming threat of tariff imposition on India increased volatility and impacted investor sentiment. Notably, the India VIX index which measures the expected volatility of the Nifty 50 index over the next 30 days closed in the green at 13.98 levels up by 3.82 per cent. A high India VIX suggests increased market uncertainty and more price swings.

Notably, macroeconomic factors such as US and India Consumer Price Inflation data which is expected to be released in March are also likely to impact the Indian stock market.