Benchmark equity indices extended their rally for the sixth consecutive day on Monday, March 24. The BSE Sensex gave a gap-up opening and surged more than 1000 points to trade above the 77,900 level. Likewise, Nifty 50 zoomed around 300 points to quote above the 23,650 level.
Broader markets too were upbeat, with Nifty Smallcap 100 and Nifty Midcap 100 trading higher by around 1.5 per cent each.
All the major sectoral indices traded in green in the morning session, with banks and oil & gas leading gains on the street.
Nifty Bank index, which tracks the movement of the top 12 private and public banks, traded higher by 2 per cent near the 51,600 level, led by gains in HDFC Bank, ICICI Bank, Kotak Mahindra Bank. Following it, Nifty Oil & Gas traded around 1.8 per cent higher, led by gains in heavyweight Reliance Industries, GAIL, and other energy stocks. Realty and Financial Services indices also traded in the 1.5-2 per cent range. Other sectoral indices like Metals, IT, Pharma and FMCG traded with gains of not more than one per cent.
Top Gainers & Losers
Among the 30 Sensex stocks, Kotak Mahindra Bank, NTPC, Axis Bank, Power Grid, and State Bank of India were the top gainers around noon, while Titan, Mahindra & Mahindra, IndusInd Bank, Zomato, and Infosys dragged the index.
From the Nifty 50 pack, Kotak Mahindra Bank, NTPC, Bharat Electronics, Axis Bank, and Bajaj Finserv were the biggest gainers. On the other hand, Mahindra & Mahindra, Titan, IndusInd Bank, Trent, and Hero MotoCorp were the top losers.
Strong Weekly Gains
Domestic equity indices registered one of their strongest weekly gains last week. The Nifty 50 surged 953.20 points, or 4.26 per cent, while the Sensex climbed 3,076.60 points, or 4.17 per cent. Broader market indices performed even better, with the Nifty Midcap 100 jumping 7.74 per cent—its strongest weekly gain since April 2020—and the Nifty Smallcap 100 skyrocketing 8.64 per cent, its biggest weekly gain since June 2020.
Apart from this, several theme-based stocks also saw a major revival. The momentum in Defence stocks re-emerged, riding majorly on Europe’s $872 billion rearmament plan. Accordingly, the Nifty India Defence index rose 10.47 per cent last week. Capital market stocks too saw a strong revival as investor sentiments turned positive, with the Nifty Capital Market index rising 13.92 per cent in the same period.
What Triggers Are Contributing To The Rally?
According to Ajit Mishra – SVP, Research, Religare Broking, several factors contributed to the sharp recovery. Mishra said, the easing pressure from foreign institutional investors (FIIs), highlighted by positive flows in both the cash and derivatives segments, provided much-needed stability.
Lower crude oil prices and a declining dollar index helped support market sentiment. Further optimism was fueled by dovish signals from the US Federal Reserve regarding future rate cuts, along with reports suggesting de-escalation in the Russia-Ukraine conflict, said Mishra.
“The rally was broad-based, with all key sectors participating. Realty, energy, and pharma emerged as the top gainers, adding to the overall market buoyancy,” Mishra said.
VK Vijayakumar, Chief Investment Strategist at Geojit Investment Services, noted that the improving macroeconomic conditions in India and attractive valuations have turned FIIs from being sellers to buyers. This change has sparked significant short covering, leading to sharp price increases, he said.
However, Vijayakumar also cautioned that April 2, the day of reciprocal tariffs, is approaching, and the uncertainty surrounding it is considerable. He advised investors to wait for more clarity on the issue before making further investment decisions.
Stock Market Outlook For This Week
According to Bajaj Broking Research, the last week of March 2025 will be important for market sentiment, with several key economic data releases lined up, which will provide insights into growth, inflation, and employment trends.
“On March 24, S&P Global Manufacturing PMI data for India and the US will indicate manufacturing activity and business confidence. This will be followed by US New Home Sales (March 25), offering a snapshot of housing market demand. Midweek, Durable Goods Orders (March 26) will provide insights into business investment trends, while March 27 will see the release of critical US economic indicators, including Core PCE Prices (Q4), GDP (QoQ) (Q4), and Initial Jobless Claims, all of which could shape Federal Reserve policy expectations,” said the Bajaj Broking Research.
Adding further, the firm said, “The week will end with the Fed's Balance Sheet and PCE Price Index (YoY) on March 28, a key inflation gauge closely watched by the Fed. With inflation, growth, and employment data in focus, markets could see volatility, impacting sectors like banking, housing, and consumer goods.”
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