Stock Market Today: Domestic benchmark indices opened higher on March 5 after registering deep cuts over the previous three sessions. Following a gap-up start, the BSE Sensex surged as much as 550 points, or 0.69 per cent, to touch an intraday high of 79,666.46, while the NSE Nifty 50 advanced 176 points, or 0.72 per cent, to reach the day’s high of 23,656.70.
Metals and energy stocks led gains on the benchmarks. Among Nifty 50 constituents, the metals giant Hindalco was up over 6.50 per cent, the state-run Coal India traded higher by nearly 4 per cent, while upstream oil firm ONGC and steel major Tata Steel were up by around 3 per cent each. Further, index heavyweight Reliance Industries, energy conglomerate NTPC, and iron and steel manufacturer JSW Steel were also up between 2.50 per cent and 3 per cent, lending support to Nifty 50.
On the other hand, IT stocks emerged as the major drag, capping gains on the benchmark index. HCL Tech, Tata Consultancy Services (TCS), Tech Mahindra and Infosys were among the major losers of the day, falling between 1 per cent and 2 per cent. Other major losers were Eternal (formerly Zomato), InterGlobe Aviation, Max Healthcare, and Nestle India.
Why Is Stock Market Rising Today
The rebound in domestic equities comes on the back of improving investor sentiment after reports suggested that Iran may be open to diplomatic talks, raising hopes of easing geopolitical tensions. Further, reassurances from US President Donald Trump to stabilise oil markets helped calm investor nerves.
According to Karan Aggarwal, co-founder and CIO at Ametra PMS, the reduced intensity of the conflict has improved sentiment across global markets.
“Reducing intensity of Iran’s missile attacks, down from 100s in a day to barely a dozen now, and rumours around backchannel rapprochement between warring parties have ignited hope of a short-lived war. That has led to an optimism-linked rebound in global markets with most benchmarks pruning weekly losses,” Aggarwal said.
He added that improving global cues have supported a rebound in equities. However, he said that market breadth and momentum still suggest investors are cautious and waiting for more clarity before the next big move.
Technical factors are also playing a role in the market’s recovery. Hitesh Tailor, technical research analyst at Choice Broking, said the recent rally is largely a relief bounce after the deep correction seen earlier.
“Despite the surge in crude oil prices and persistent geopolitical tensions in West Asia, today’s market rebound appears largely driven by technical and derivative factors. After the recent sharp correction, benchmark indices had slipped into deeply oversold territory, prompting a relief rally,” Tailor said.
He added that the cooling in volatility, reflected in the decline of the India VIX from elevated levels, suggests that markets had already priced in a large part of the geopolitical concerns earlier.
The India VIX, index, also known as the fear gauge, cooled down by over 16 per cent to 17-18 level in today’s trade.
Tailor also said strong buying by domestic institutional investors (DIIs) has helped steady the market, even as foreign institutional investors (FIIs) remain cautious. However, he cautioned that persistently high crude oil prices continue to pose a key macroeconomic risk for India.
This is a developing story...
