Markets resume correction after positive opening; Midcap and smallcap indices fall 2.5%

NIFTY50 and SENSEX resumed to correction mode in the early morning session after a positive opening. Indian equity markets witnessed selling pressure in late morning deals, with Sensex and Nifty falling over half a per cent each despite positive cues from other Asian markets. Heavy selling at Energy and Oil and gas counters hit sentiments the most. Traders also got cautious as India's manufacturing activity grew at a slow pace in February. Despite slowing to the weakest since December 2023, rates of expansion in output and sales remained elevated in the context of the survey's 20-year history.

According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased to 56.3 in February as against 57.7 in January.

On the global front, Asian markets were trading mostly in green, after China's manufacturing activity logged a faster growth in February underpinned by rises in both output and new orders. The survey data published by S&P Global showed that the Caixin manufacturing Purchasing Managers' Index rose to 50.8 from 50.1 in the previous month. The reading was seen at 50.4. The index has remained above the threshold 50.0 mark for the fifth straight month suggesting expansion.

Mid-cap and small-cap indices fall over 2.5%

The broader Nifty mid-cap and small-cap indices faced more pressure as they are highly underperforming against the benchmark indices. The NIFTY smallcap 100 index is down 2.5% at 14,331 levels and has fallen more than 27.5% from the peak. Similarly, the NIFTY midcap 100 index has fallen nearly 2% on Monday and is trading at 49,956.

The NIFTY smallcap 100 index is facing intense selling pressure and is currently traded at 27.5% lower than the peak achieved in December 2024. Stocks Like Angel One, SW Solar, Inox Wind, BLS International, and Jupiter Wagons are the top losers in today's trade with losses of up to 10%.

The NIFTY50 22011.95, down by 112.75 points or 0.51% after trading in a range of 22005.70 and 22261.55. 21 stocks were advancing against 29 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 2.20%, Grasim Industries up by 2.07%, Eicher Motors up by 1.94%, Wipro up by 1.80% and Infosys up by 1.52%. On the flip side, Coal India down by 4.21%, Reliance Industries down by 3.27%, Indusind Bank down by 3.21%, Bajaj Finserv down by 2.60% and Adani Enterprises down by 2.39% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 294.96 points or 1.29% to 23,236.28, Jakarta Composite gained 236.1 points or 3.63% to 6,506.70, Shanghai Composite strengthened 12.26 points or 0.37% to 3,333.16, Straits Times rose 17.82 points or 0.46% to 3,913.52 and Nikkei 225 surged 630.81 points or 1.7% to 37,786.31, while Taiwan Weighted lost 388.87 points or 1.69% to 22,664.31.