Indian equity benchmarks rebounded sharply on March 16, snapping a three-day losing streak as late-session buying in banking and other heavyweight stocks lifted the market.
The BSE Sensex ended 939 points, or 1.26 percent, higher at 75,502.85, while the Nifty 50 gained 258 points, or 1.11 percent, to close at 23,408.80.
The recovery was even sharper from the day’s lows. The Sensex had slipped to 73,949.76 earlier in the session but bounced back by about 1,553 points. The Nifty recovered more than 450 points from its intraday low of 22,955.25, briefly regaining the 23,500 mark during the session.
However, the rally was largely driven by large-cap stocks, while the broader market remained weak. The BSE Midcap index fell 0.42 percent and the Smallcap index declined 0.47 percent.
Despite the benchmark gains, the overall market capitalisation of BSE-listed companies stayed nearly flat at around ₹430 lakh-crore due to losses in mid and small cap stocks.
Buying in heavyweight stocks such as HDFC Bank, ICICI Bank, Reliance Industries and State Bank of India helped the indices recover strongly.
Market participants largely focused on quality large caps after the recent correction made valuations more attractive.
According to Vinod Nair of Geojit Investments, the rebound was mainly a relief rally after the recent sell-off.
“The equity market staged a late-session rebound supported by value buying in domestically oriented sectors such as auto, banking and FMCG,” he said.
He added that although valuations have moderated, near-term challenges remain.
Investor sentiment continues to be influenced by developments in West Asia, particularly the situation around the Strait of Hormuz.
Any easing of supply disruptions in the region could support markets, but elevated crude oil prices remain a major concern.
Brent crude is still trading above $100 per barrel, raising concerns about inflation and the trade deficit for oil-importing economies like India.
Adding to the pressure, the Indian rupee weakened further on Monday. According to provisional data, it fell 12 paise to close at a record low of 92.42 against the dollar.
Global investors are also awaiting the US Federal Reserve’s policy decision scheduled for March 18.
While the Fed is widely expected to keep interest rates unchanged, market participants will closely watch its commentary on inflation and economic growth for signals on the future rate trajectory.
Among sectoral indices:
Nifty Financial Services rose 1.50 percent
Nifty Bank gained 1.22 percent
Nifty Private Bank advanced 1.24 percent
Nifty Auto climbed 1.67 percent
Nifty FMCG added 1.14 percent
On the other hand:
Nifty Oil and Gas fell 1.58 percent
Nifty Realty declined 1.57 percent
Nifty Pharma dropped 1.25 percent
Technically, the Nifty’s rebound from near 22,950 to above 23,400 suggests the possibility of a short-term pullback, though risks remain.
According to Shrikant Chouhan of Kotak Securities, the index has formed a reversal pattern on intraday charts and a bullish candle on the daily chart.
Key support levels are placed at 23,300 and 23,200. As long as the index remains above these levels, the pullback could continue.
On the upside, resistance is expected around 23,650 and 23,800. A fall below 23,200 could again push the market towards the 23,000–22,950 zone.
Rupak De of LKP Securities noted that the Nifty has formed a “piercing line” pattern on the daily chart, which is generally considered a bullish reversal signal after a correction.
However, he cautioned that the broader market sentiment remains fragile despite the possibility of a near-term recovery.
