Stock Market Update Today, Mar 13: FII Selling Continues, Sectoral Weakness Keeps Markets in a Defensive Mode

Market Outlook:
 Global markets witnessed broad-based weakness overnight, with the S&P 500, Dow Jones and Nasdaq declining amid heightened geopolitical tensions in the Middle East and rising crude oil prices. Gift Nifty indicates a weak start for Indian equities, suggesting continued risk-off sentiment. Domestically, the Nifty closed at 23,639, down nearly 1%, while the Sensex declined to 76,034 as selling pressure persisted across financials and autos. Elevated volatility, reflected in India VIX moving above 21, indicates heightened uncertainty in the near term as markets react to crude oil spikes, rupee depreciation and geopolitical developments impacting energy supply chains. 

FII and DII Activity:
 Foreign Institutional Investors (FIIs) remained aggressive sellers in the last session, offloading equities worth approximately ₹7,050 crore, reflecting global risk aversion and capital reallocation toward safer assets amid geopolitical uncertainty. In contrast, Domestic Institutional Investors (DIIs) continued to provide liquidity support to the markets with net buying of around ₹7,450 crore. Despite DII participation, the heavy FII outflows continued to weigh on benchmark indices and large-cap stocks. 

Sector Activity:
 Sectoral performance remained mixed but largely negative. The Auto, FMCG, Private Banks, and Realty sectors saw notable declines, with Nifty Auto falling over 3% due to weakness in stocks like TVS Motor and Mahindra & Mahindra. Nifty FMCG declined nearly 1.8%, while Private Banks dropped around 1.6%. On the positive side, Energy, Oil & Gas, Metals, and Chemicals showed resilience as investors shifted toward commodity-linked sectors amid rising crude prices and supply concerns. 

Derivatives Activity – Long/Short Positions:
 Derivatives data indicates selective long buildup in stocks such as Power India, CG Power, Solar Industries, NTPC and United Spirits, reflecting positive momentum in power and defense-related themes. On the other hand, fresh short positions were observed in banking stocks including Federal Bank, SBI, ICICI Bank, Union Bank and Canara Bank, indicating continued bearish sentiment in the financial space. Long unwinding was visible in stocks such as Grasim, CAMS, Godrej Consumer, Polycab and Adani Ports, suggesting profit booking, while short covering was seen in Reliance Industries, National Aluminium, Mazagon Dock and SRF. 

Top 5 News

1. Reliance Industries: Secured a 9-year $150 million supply contract with a global agrochemical major for intermediates, expected to improve asset utilization and enhance medium-term revenue visibility.
2. Tata Steel: Selected as the preferred bidder for the Thakurani-A1 iron ore block in Odisha with estimated reserves of 132 million tonnes, strengthening raw material security and cost efficiency.
3. Adani Total Gas: Shares rallied after the government prioritized domestic natural gas allocation for city gas distribution companies, improving supply visibility amid global LNG disruptions.
4. Hindustan Aeronautics: Order book remains strong at ₹1.84 lakh crore following recent defense contracts worth ₹5,083 crore, supported by higher defense spending and indigenous manufacturing focus.
5. Ashok Leyland: Announced plans to invest ₹500 crore in a battery-pack manufacturing facility near Chennai to strengthen its electric vehicle ecosystem and reduce import dependence.