Indian markets ended flat on Monday after experiencing significant volatility throughout the day, with a notable recovery in the broader market in the latter half of trading. The Nifty slipped by 5 points, closing at 22,119, while the Sensex fell 112 points to settle at 73,086, reflecting a cautious sentiment among investors. However, the market witnessed a strong rebound in the second half of the session, especially in the midcap and capex-focused sectors.

The Midcap Index staged a solid recovery, climbing over 1,100 points from its earlier lows, with notable buying in capital expenditure (capex)-related stocks.

The Nifty Bank index saw a decline, dropping 230 points to end the day at 48,114, weighed down by concerns over the banking sector. However, the broader market’s recovery helped offset some of the losses. In the auto sector, the Nifty Auto Index closed with minor gains, despite mixed February sales figures. Mahindra & Mahindra, Escorts Kubota, Eicher Motors, and TVS Motors saw positive movement after reporting better-than-expected sales. On the other hand, Maruti Suzuki, Bajaj Auto, Hero MotoCorp, and Tata Motors faced declines after their sales figures missed analysts’ expectations.

UltraTech Cement saw significant buying interest following positive management commentary, with its stock advancing amid the broader market rally. Meanwhile, stocks in the real estate sector also posted strong gains, with Prestige Estates and Godrej Properties among the top performers.

Power sector stocks saw an uptick, with REC and Power Finance Corporation (PFC) gaining 4-5% after positive brokerage notes boosted sentiment. Midcap stocks also saw strong buying, with names like Tube Investments, Supreme Industries, Varun Beverages, PFC, and Adani Green gaining between 4-8%. These stocks were buoyed by optimism surrounding their growth prospects in the coming months, particularly in sectors like industrials and utilities.

Capital market stocks remained under pressure, with Angel One falling 9% and MCX slipping 6%. These declines were linked to a weaker sentiment surrounding financial markets, as concerns about global market volatility and regulatory uncertainties continue to weigh on investor sentiment.

Stocks like IREDA, IFFL Finance, and Titagarh Rail faced selling pressure, with all three slipping for the second consecutive day following their inclusion in the futures & options (F&O) segment. The inclusion has led to increased volatility in these stocks, as traders adjust their positions.