Indian stock market regained strong momentum in the trading session on March 17 following a roller-coaster ride last week, as healthy gains in financials, pharma, and auto stocks pushed frontline indices higher by the session's close.
The market continued to build on its gains since the opening bell, with the rebound driven by the relief rally seen on Wall Street last March 14, which spilled over into Asian markets in Monday's trade. China's announcement of new measures to boost domestic consumption further powered the rally in domestic metal stocks.
IT and oil & gas stocks also showed some resurgence in trade, while FMCG and realty stocks extended their bearish streak.
The broader market also saw a sharp uptick, as midcap and smallcap stocks rebounded after being hammered last week. The drop in the US dollar index also supported the rally, which is currently hovering at five-month low as trade uncertainties and mounting economic concerns in the US weighed on the currency.
Nifty, Sensex gain: Against this backdrop, the Nifty ended the session with a gain of 0.50% at 22,508 points, ending its two-day slide, while the Sensex concluded the session at 74,169 points, 0.46% higher than March 13's close, ending its five-day losing streak.
Smallcaps and midcaps gain: The broader market also finished Monday's session higher, with the Nifty Midcap 100 index gaining 0.70% to settle at 48,461 points, while the Nifty Smallcap 100 index surged 0.48% to close at 14,968 points.
Pharma stocks shine: Among the 13 major sectoral indices, Nifty Pharma emerged as the top sectoral gainer, ending the session with a gain of 1.56%. Nineteen out of the 20 constituents of the index closed in the green, with Dr. Reddy's Laboratories, Granules India, and Biocon leading the gainers' pack with gains of up to 4%. Nifty Auto made a strong comeback, closing with gains of 0.91% after facing heavy selling pressure last week.
Other sectoral indices, including Nifty Metal and Nifty Consumer Durables, finished the session with gains ranging between 0.23% and 0.77%.
Nifty Meadia slides: On the losing side, Nifty Media extended its slide for the third straight session, tumbling another 0.65%, while Nifty Realty also extended its decline for the third consecutive day, falling by 0.38%
Commenting on Monday's market performance, Vinod Nair said, “ The national market experienced a positive trading session, driven by strong performance in the healthcare and financial sectors. However, lower participation from domestic investors due to tariff-related uncertainties may cause the market to fluctuate within a range in the near term.”
"A decisive momentum will depend on signs of earnings growth, while improving domestic economic indicators suggest a potential recovery. Investors are closely monitoring the upcoming FED and BOJ meetings, with expectations leaning towards maintaining the current stance due to inflation risks associated with tariff uncertainties," he added.
Technical outlook: Ajit Mishra of Religare Broking, said: "the Nifty is now looking for a decisive trigger to surpass the key hurdle of the 20-day exponential moving average (DEMA) near 22,600 and end the prevailing consolidation phase. While the strength in banking and financial majors continues to support sentiment, the underperformance of other heavyweight sectors is limiting the upside."
(By arrangement with livemint.com)
