Sensex sheds 800 points, Nifty closes at 24,550

Indian equity markets endured a lackluster session on March 6, 2026, with the Nifty slipping below the 24,600 level amid volatile trading and no signs of Friday cheer on Dalal Street. The benchmark index fell from its intraday high of around 24,700, reflecting selling pressure particularly in financials, though broader market action remained mixed. Midcap stocks outperformed the frontline indices, providing some support to the overall market, bolstered by resilience in sectors like metals and IT.

Despite the subdued headline performance, certain pockets showed notable strength. Defense and shipbuilding-related stocks buzzed with activity, with names like Jupiter Wagons surging around 15%, DCX Systems up about 14%, and others such as Mazagon Dock, GRSE (Garden Reach Shipbuilders & Engineers), and Bharat Dynamics posting solid gains in the 5-10% range. Broader defense plays, including Bharat Electronics and Paras Defence, also stayed firm on traders' radars.

However, midcap IT names faced headwinds, with stocks like KPIIT Technologies and Ashok Leyland coming under selling pressure and closing near session lows. Wind turbine manufacturers Inox Wind and Suzlon Energy likewise saw significant declines, hitting fresh lows in some cases. A key highlight driving positive sentiment in select consumer stocks came from the Karnataka state budget announcements. The government introduced a progressive excise duty structure for alcoholic beverages, shifting taxation from volume-based to alcohol content-based starting April 2026.

This change, to be phased in over three to four years, aims to address long-standing disparities—beer, with lower alcohol content, has historically been taxed similarly to higher-proof spirits like whiskey despite larger volumes per bottle, putting the beer industry at a disadvantage. The budget also halved the number of price slabs from 16 to eight, granting companies greater pricing flexibility, and promoted alco-beverage tourism by allowing distilleries and breweries to host tastings and direct sales to tourists.

Industry experts welcomed the move as a step toward fairer, more responsible taxation aligned with global practices, where duties are linked to actual alcohol content. Vinod Giri, Director General of the Brewers Association of India, emphasized Karnataka's significance—accounting for about 12% of national beer volumes and hosting the highest number of operating breweries. He noted that the state has long been viewed as a progressive policy leader and a trendsetter for the sector.

In corporate developments, branded hotel ownership and asset management platform Samhi Hotels announced its acquisition of a 70% stake in luxury hotel aggregator RARE India for Rs 47.39 crore. Management outlined ambitious plans to scale RARE's existing business, targeting revenue growth from Rs 22 crore to Rs 9,200 crore over time, marking a push into experiential and luxury hospitality segments. Consulting and AI product firm Fractal Analytics delivered robust Q3 results, posting strong revenue growth alongside margin expansion. Management highlighted the company's positioning as a net beneficiary of the ongoing AI boom, with sustained demand across key verticals.

The company reported no payment delays or supply chain issues, emphasizing multilaterally funded or LC-backed projects outside vulnerable government schemes. As the session drew to a close, midcaps showed signs of recovery from intraday lows, though the advance-decline ratio stayed nearly flat. Market participants continue to monitor sectoral rotations and policy impacts for directional cues in the coming sessions.