The Indian stock market saw sharp gains towards the fag-end of the session on Monday, March 16, driven by banking, financial, auto, and FMCG stocks, even as geopolitical risks persist.
The Sensex ended 939 points, or 1.26%, higher at 75,502.85, while the Nifty 50 settled at 23,408.80, gaining 258 points, or 1.11%.
From the day’s low of 73,949.76, the 30-share pack jumped 1,553 points, while the Nifty 50 rose by more than 450 points, or almost 2%, from its intraday low of 22,955.25.
However, gains were not broad-based as the BSE 150 Midcap index ended with a loss of 0.42%, while the BSE 250 Smallcap index fell 0.47%.
Due to losses in the mid- and small-cap segments, the overall market capitalisation of BSE-listed stocks remained flat at around ₹430 lakh crore.
What drove the Sensex and Nifty 50 higher today?
Market benchmarks jumped on buying in heavyweights, including HDFC Bank, ICICI Bank, Reliance, and SBI.
Investors bought quality large caps as recent significant falls brought their prices lower, offering an attractive entry opportunity.
“The equity market staged a late-session rebound, supported by value buying in domestically oriented sectors such as auto, banking, and FMCG, a relief rally following the recent sell-off,” Vinod Nair, Head of Research, Geojit Investments, observed.
Nair highlighted that for the market, near-term challenges persist even as valuations have moderated, narrowing the premium valuation gap across several key sectors.
“In the near term, investor sentiment will hinge on developments in the Strait of Hormuz, where any easing of supply chain disruptions could provide further support. However, persistently elevated oil prices continue to weigh on broader market direction,” Nair said.
Rising crude oil prices due to the US-Iran war, rupee’s weakness, and foreign capital outflows remain key challenges for the domestic market, and any bounce may be short-lived.
As per provisional figures reported by the PTI, on Monday, the Indian rupee fell 12 paise to close at a record low of 92.42 against the US dollar.
Brent Crude continues trading above $100 per barrel, and given the current situation in the Middle East, it looks unlikely that oil prices will ease soon.
Amid the geopolitical chaos, the focus is on the US Federal Reserve’s policy decision also. While the Fed is expected to keep rates unchanged on 18 March, investors will be keenly observing the Fed’s commentary on growth and inflation trends.
Among the sectoral indices, the Nifty Bank rose by 1.22%, while the Financial Services index jumped 1.50%. Nifty Private Bank jumped 1.24%.
Nifty Auto (up 1.67%) and FMCG (1.14%) also clocked strong gains.
On the other hand, Nifty Oil and Gas (down 1.58%), Realty (down 1.57%), and Pharma (down 1.25%) ended with significant losses.
Nifty’s technical outlook
The index fell near 22,950 during the session but rebounded to reclaim the psychologically important 23,400 level. Some technical experts believe the index may attempt to extend the gains, but the prevailing risks may trigger a sell-on-rise.
Shrikant Chouhan, the head of equity research at Kotak Securities, pointed out that a reversal formation on intraday charts and a bullish candle on daily charts indicate that a pullback move is likely to continue in the near future.
“For day traders, 23,300 and 23,200 would act as key support zones. As long as the market is trading above these levels, the pullback formation is likely to continue,” said Chouhan.
“On the higher side, 23,650 and 23,800 would serve as key resistance areas for the bulls. Conversely, below 23,200, the uptrend would become vulnerable. If that level is breached, the market could retest the levels of 23,000–22,950,” Chouhan said.
“On the daily chart, the index has formed a piercing line pattern, which is a bullish reversal signal after a prolonged correction. Although the broader sentiment has not changed significantly, a near-term technical pullback cannot be ruled out,” said Rupak De, Senior Technical Analyst at LKP Securities.
De believes on the higher side, the index may witness a recovery towards 23,800 or even higher. On the lower end, immediate support is placed at 23,200; a break below this level could push the index back into weakness.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
