Mid-day Mood | PSU selloff sours the sentiment for broader markets while Nifty trades quiet

Benchmark indices are trading quiet in a range but the broader markets are reeling under selling pressure on March 12, weighed down by weakness in PSU index and components. At around 1pm, BSE Midcap and Smallcap indices were down 1.3 percent and 2.3 percent, underperforming the Nifty50 index.

Indian Bank and SJVN were among the top losers on BSE Midcap, while Paisalo Digital and Lancer Container Lines were the worst hit in the Smallcap category.

Sensex and Nifty gave up their early gains, with selling in banking names Axis Bank and ICICI Bank keeping the index subdued.

Investors have also turned cautious ahead of the release of key domestic data and US inflation numbers due later this evening. The US CPI data will be closely watched for any clues on US Federal Reserve's rate trajectory.

Sectoral Trends

Most sectoral indices were in the negative territory, with Nifty Realty, media and PSU bank index among the worst hit. Nifty IT is the only major gainer while Nifty private bank index is trading flat.

Fundamental View

"Despite the market reaching all-time highs, sentiments appear to be somewhat subdued. It may be advisable to focus on trading only in high-quality stocks under such circumstances," said Shrey Jain, Founder and CEO, SAS Online.

Technical View

The expectation of trending moves on the upside is fading away in the absence of strength from the key index heavyweights, said Jatin Gedia, Technical Research Analyst at Sharekhan. "In terms of levels, 22,224–22,167 is the crucial support zone, while 22,530–22,600 is the immediate hurdle zone from short-term perspective."

Key Nifty Gainers

TCS, HDFC Bank, LTIMindtree, Eicher Motors, Maruti Suzuki

Key Nifty Losers

Cipla, ITC, Adani Enterprises, SBI, Bajaj Auto

Stocks On The Move

Solar Industries India: Shares surged 3.6 percent after analysts at ICICI Securities retained a “Buy” call, raising the target price to Rs 9,050 a share, implying an upside of 13 percent from the current level.

Praveg Limited: Shares gained over 4 percent at the open, a day after Goldman Sachs India Equity Portfolio picked up a 2.18 percent stake in the company.

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