Benchmark indices Nifty and Sensex were off to a flying start on March 27, with gains in banking and oil & gas shares offsetting US President Trump's sweeping 25 percent tariff on automobile imports, weighing on carmakers and ancillary players.

At about 10:05 am, the Sensex was up 394.25 points or 0.51 percent at 77,682.75, and the Nifty was up 104.05 points or 0.44 percent at 23,590.90. About 1,568 shares advanced, 1,574 shares declined, and 120 shares remained unchanged.

Tata Motors shares cracked as much as 7 percent following the development. For Jaguar Land Rover (JLR), Tata Motors’ luxury car subsidiary, the US is a key market. North America accounted for nearly one-third of JLR’s global sales in 2024, with the US alone contributing 22 percent, according to its annual report. Higher tariffs could make JLR vehicles more expensive for American buyers, potentially affecting demand.

"Lingering worries surrounding the impending April 2 tariff deadline have triggered heightened global market volatility, causing investors to adopt a cautious approach to their investment decisions," Devarsh Vakil, Head of Research at HDFC Securities, said.

Institutional activity suggests that while FIIs are not overly concerned about tariffs, DIIs are taking a cautious stance. During the last five trading days, FIIs bought equity for Rs 21,376 crores while DIIs sold equity for Rs 9,704 crores. Despite net institutional buying yesterday, the market drifted down, indicating concern and fear in the market.

The broader market was little changed with the Nifty Midcap 100 and Smallcap 100 gaming 0.1 percent, each. Aishvarya Dadheech, Founder and CIO of Fident Asset Management, says that smallcaps have entered a relatively attractive zone, supported by strong growth prospects. However, midcaps remain expensive, requiring a selective approach.

Sectorally, Nifty Auto was the biggest laggard, tanking 1.5 percent. A fall in names such as Tata Motors, Mahindra and Mahindra, Bajaj Auto, Maruti Suzuki, and Eicher Motors dragged the index lower. Nifty Pharma and Healthcare index followed suit, down by bout 0.7 percent amid Trump's tariff concerns. On the flipside, the Nifty Oil and Gas and PSU Bank index were top gainers, rising by 1.2 percent.

BSE shares traded over 4 percent higher after announcing that it will consider a bonus share issue proposal in its upcoming board meeting on Sunday, March 30. According to the data available on the exchanges, BSE last distributed a bonus in the ratio of 2:1 in 2022. In June 2024, it declared a dividend of Rs 15 per share for the shareholders.

Shares of auto components maker Samvardhana Motherson International Ltd (SAMIL) cracked over 5 percent after Trump's 25 percent auto tariff. This comes despite CLSA suggesting that the share price could double within the next three years. Over the past six months, shares of Samvardhana Motherson have cracked 35 percent amid the ongoing market correction, as a result of US President Donald Trump's threat of tariffs, macro concerns, coupled with a valuation de-rating

"The Nifty is approaching its key support zone near the major moving averages ribbon around 23,400. A decisive hold at this level could trigger the next leg of the uptrend; otherwise, the consolidation phase may persist. Despite prevailing challenges, we maintain a positive market outlook and recommend a stock-specific approach, focusing on those demonstrating relative strength," Ajit Mishra, Senior Vice President at Religare Broking said.

L&T, Shriram Finance, Trent, ICICI Bank, and Hero MotoCorp were the top gainers on the Nifty. Tata Motors, Dr Reddy's, Asian Paints, Apollo Hospitals, and HUL were the major laggards on the index.