Indian equities extended their recovery for a second straight session on March 17, with benchmark indices gaining on the back of bargain hunting, short covering and supportive global cues, even as geopolitical tensions and high crude oil prices persist.
The BSE Sensex rose 568 points, or 0.75 percent, to close at 76,070.84, while the Nifty 50 advanced 172 points, or 0.74 percent, to settle at 23,581.15. Over the past two sessions, both indices have gained about 2 percent, with the Sensex rising more than 1,500 points.
Broader markets also joined the rally, signalling improved risk appetite. The BSE Midcap index climbed 1.08 percent, while the Smallcap index rose 0.43 percent, reversing the previous session’s underperformance.
Short covering after the recent sharp correction
Bargain buying in beaten-down sectors
Positive global market cues
Selective accumulation by domestic investors
Market participants said the recent fall had made valuations more attractive, prompting investors to step in, particularly in cyclical sectors.
Auto, metal, banking and financial stocks led the gains. The Nifty Metal index surged nearly 3 percent, while Auto and Realty indices gained over 2 percent each. Banking and financial stocks also saw steady buying interest.
However, defensive sectors lagged. IT and FMCG indices ended lower, reflecting continued caution in export-oriented and consumption plays.
Despite the rebound, key risks continue to weigh on sentiment:
Crude oil prices remain above $100 per barrel
The rupee is hovering near record lows (₹92.38 per dollar)
Ongoing tensions linked to the US–Iran conflict
Analysts caution that the current upmove may largely be a technical pullback rather than a sustained trend reversal.
Vinod Nair of Geojit Investments Limited said the rally was driven by bargain hunting in cyclical stocks that were heavily sold earlier, but warned that uncertainty linked to geopolitical developments still lingers.
The two-day rally added over ₹3 lakh-crore to investor wealth, with the total market capitalisation of BSE-listed companies rising to around ₹433 lakh-crore.
Technical indicators suggest the pullback could continue in the near term.
Immediate support for Nifty is seen at 23,300–23,350
Upside potential is pegged at 23,800–24,000
A break below 23,300 could weaken sentiment
Analysts note that the index has shown signs of a breakout on lower time-frame charts, indicating improving momentum.
Despite the recent recovery, both the Sensex and Nifty remain more than 6 percent lower on a monthly basis and are on track for a fourth consecutive month of losses.
Experts believe India’s macroeconomic fundamentals remain stable, and the ongoing correction may offer long-term buying opportunities, though near-term volatility is likely to persist.
