The benchmark index, Nifty 50, snapped its 10-day losing streak on March 5, 2025 to close at 22,337.30, up 254.65 points, or 1.15 per cent. The Sensex, too, bounced back sharply to reclaim the crucial 73,000-mark. It ended at 73,730.23, up by 740.30 points, or 1.01 per cent.
As a point of focus, all sectoral indices posted gains after a long hiatus. Leading the sectoral indices was Nifty Metal, which jumped over 4 per cent, led by over 7 per cent gains in Hindustan Copper and Welspun Corp. All other constituents of the metal index closed in green, posting gains between 2-6 per cent.
Metal stocks rallied, as China—the world's largest producer and consumer of base metals—maintained confidence in its economy by keeping its 2025 growth target at 5 per cent, the same as the previous year.
The Nifty PSU Bank and Nifty Media jumped over 3 per cent each. Other major sectoral indices such as Nifty Auto, Nifty IT, Nifty realty and Nifty Oil & Gas gained 2-3 per cent.
The Nifty Bank, which tracks the movement in 12 major private and public bank stocks, surged 0.51 per cent to close at 48,489.95.
However, even after today’s sharp bounce, many sectoral indices are still teetering in bear territory. Let’s take a look at the sectoral indices which have fallen the most.
Sectors In Bear Territory
A bear territory is when a particular stock or index, on average, falls at least 20 per cent off their recent high.
Nifty Realty is still trading down by 28.5 per cent from its 52-week high, which indicates it is still in bear territory.
Following the real estate index are Nifty Oil & Gas, which is down 28 per cent, Nifty PSU Bank, down 26.85 per cent, Nifty Auto, down 24.91 per cent, and Nifty FMCG, down 22.81 per cent.
However, some sectoral indices have shown less downside. These indices are Nifty Financial Services, Nifty Bank, Nifty Private Bank, and Nifty Healthcare, which have fallen in the range 8-15 per cent.
Nifty Pharma, Nifty Metal and Nifty IT have seen a drawdown of 15-18 per cent from their respective 52-week highs.
Why Are Markets Falling?
India’s stock market have been quite volatile in 2025 so far. While the benchmark indices – Sensex and Nifty – have declined 6.6 per cent each, the broader market has seen sharper correction.
From the broader market, both the Nifty Smallcap 100 and the BSE Smallcap index have fallen over 21 per cent year-to-date (YTD). Some sectoral indices have seen even sharper corrections.
India’s equity market has seen a drawdown due to a mix of domestic and global cues, including unabated foreign institutional investor (FII) selling, weakening rupee, rising bond yields, corporate earnings slowdown and US President Donald Trump’s tariff plans.
