The Indian stock market continued its upward trajectory for the third consecutive session on March 19, with the Sensex and Nifty 50 ending in positive territory.
Gains in heavyweight stocks such as HDFC Bank and Reliance Industries helped lift the benchmarks, while mid- and small-cap stocks surged significantly.
The Sensex closed 148 points, or 0.20 %, higher at 75,449.05, while the Nifty 50 climbed 73 points, or 0.32 %, to reclaim the 22,900 mark, settling at 22,907.60. The real action, however, was in the broader market.
The BSE Midcap index jumped 2.28 %, and the Smallcap index surged 2.17 %. This rally added nearly ₹5 lakh crore to investors' wealth, as the total market capitalisation of BSE-listed firms rose to approximately ₹405 lakh crore from nearly ₹400 lakh crore in the previous session.
Market sentiment remained positive amid hopes of economic growth picking up and corporate earnings improving. A recent correction in stocks provided a more attractive entry point for investors.
However, global uncertainty looms large, with concerns over Donald Trump's tariff policies and the US Federal Reserve's policy decision due later in the day.
Vinod Nair of Geojit Financial Services suggested that the market's recent correction made valuations more reasonable, contributing to the relief rally. However, he cautioned that sustained gains would depend on fundamental economic improvements.
Among the Nifty 50 stocks, Shriram Finance led the gainers with a 3.91 % rise, followed by HDFC Life Insurance, which was up 3.83 %, and Apollo Hospitals Enterprises, which gained 2.93 %.
On the other hand, Tech Mahindra dropped 2.32 %, ITC lost 1.39 %, and Tata Consultancy Services declined 1.34 %, making them the worst performers in the index.
Most sectoral indices ended higher, except for IT and FMCG, which fell 1.08 % and 0.55 %, respectively.
The best-performing sectors included Realty, which gained 2.80 %, PSU Bank, which rose 1.98 %, Metal, which increased by 1.27 %, and Media, which climbed 1.08 %.
Banking and financial services stocks also saw moderate gains, with Nifty Bank settling 0.79 % higher and the Financial Services index rising 0.71 %.
In terms of market activity, Vodafone Idea was the most traded stock on the NSE, with 68.2 crore shares changing hands, followed by Easy Trip Planners with 12.7 crore shares and Ola Electric Mobility with 12.5 crore shares. JP Power and YES Bank also saw significant trading volumes.
A total of 81 stocks, including Kotak Mahindra Bank, Bajaj Finance, IndiGo, Coromandel International, and Muthoot Finance, touched fresh 52-week highs on the BSE.
At the same time, 154 stocks, including Manugraph India, Omaxe, GACM Technologies, and SIS, hit their 52-week lows. Six stocks, namely Asian Energy Services, Vibhor Steel Tubes, Garden Reach Shipbuilders, Ksolves India, Brooks Laboratories, and Sindhu Trade Links, surged 20 % on the NSE.
The overall market trend remained bullish, with 2,345 stocks advancing against just 568 decliners on the NSE. That means nearly four stocks gained for every one that fell, while another 77 stocks remained unchanged.
Shrikant Chouhan of Kotak Securities noted that while the short-term market sentiment remains positive, some temporary overbought conditions could keep Nifty 50 in a range.
He pointed out that support levels to watch are 22,800-22,720, while resistance may be seen at 23,000-23,100. A drop below 22,720 could make the uptrend vulnerable.
The market’s next move will likely depend on the US Federal Reserve’s policy decision and Chair Jerome Powell’s commentary on growth and inflation. Additionally, any updates on global trade policies could also sway sentiment in the coming days.
(By arrangement with livemint.com)
