Markets Edge Higher Amid IT Surge, But Profit Booking Drags Mid & Small Caps - 25th March,2025
- Akshay Chavan
- Mar 26
- 2 min read
Stock Market Wrap-Up: IT Stocks Lift Indices, Mid & Small Caps Face Selling Pressure
Indian equity benchmarks extended their winning streak for a seventh consecutive session on Tuesday, though early gains faded by the close. The rally was primarily supported by IT stocks, while mid and small-cap segments faced profit booking.
The BSE Sensex touched an intraday high of 78,741.69 before retreating to 78,017.19, registering a modest increase of 32.81 points (0.04%). Similarly, the NSE Nifty50 ended nearly flat at 23,668.65, up by 10.30 points (0.04%).
IT Stocks Buck the Trend, Consumer Durables Lag
The Nifty IT index emerged as the standout performer, climbing 1.32%, fueled by gains in Persistent Systems and Coforge, which surged over 2% each. Positive global cues and valuation corrections contributed to the IT sector’s resilience.
Conversely, consumer durables took the biggest hit, with the Nifty Consumer Durables index shedding 1.93%. Dixon Technologies and Rajesh Exports led the decline, plunging 7.12% and 5.38%, respectively. Barring Nifty Financial Services and Nifty Private Bank, all other sectoral indices ended in the red.
Cautious Outlook Amid Policy Uncertainty
Vinod Nair, Head of Research at Geojit Investments, highlighted that investors remain watchful as they seek clarity on US-India trade policies. Attention is also shifting toward quarterly earnings, which could provide insight into corporate growth recovery.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, noted that caution prevailed ahead of the F&O expiry, with selling pressure evident in banking, realty, oil & gas, and metals. Despite the market’s range-bound movement, the Sensex managed to hold above the 78,000 level, buoyed by tech stocks.
Technical Outlook: Nifty Faces Resistance at 23,800
According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty struggled at the previous swing high, resulting in a volatile session. Key support lies at 23,300, aligning with the 100-EMA, while resistance remains at 23,800. A breakout above 23,800 could extend the rally, whereas a dip below 23,600 might lead to further weakness.
Adding to this, Hrishikesh Yedve, AVP (Technical & Derivatives Research) at Asit C Mehta Investment Intermediates, pointed out that Nifty’s failure to sustain above 23,810 signals underlying weakness. However, as long as the index stays above the 100-DMA at 23,500, it retains immediate support. A decisive move past 23,810 could propel Nifty towards 24,080, but a fall below 23,500 may trigger a slide towards the 23,300–23,200 range.
View Point: While the broader market momentum remains positive, investor sentiment is likely to stay cautious amid global trade uncertainties and sectoral rotation. The focus will now be on upcoming earnings reports and key technical levels to gauge the market's next direction.
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