Mumbai: On March 17, 2025, the BSE Sensex made a strong recovery, gaining 341.04 points to close at 74,169.95, ending its five-day losing streak. The NSE Nifty also rose, adding 111.55 points, closing at 22,508.75. Both the 30-share Sensex and 50-share Nifty indices rallied by nearly 0.5% each, following a sharp rebound in global shares and buying interest in key sectors like banking.

Key Gainers and Laggards in the Sensex Pack

Among the top gainers on the Sensex were:

• UltraTech Cement
• Axis Bank
• Bajaj Finance
• Adani Ports
• Bajaj Finserv
• Mahindra & Mahindra
• ICICI Bank
• Zomato

These stocks showed notable gains, particularly in sectors that have seen investor confidence improve in recent sessions.

On the other hand, some laggards included:

• Tata Consultancy Services (TCS)
• State Bank of India (SBI)
• Reliance Industries
• ITC
• Nestle
• Asian Paints

These stocks saw some selling pressure, reflecting a mixed sentiment among investors.

Market Sentiment and Global Influence

The market's recovery was fueled by optimism across global markets, which helped reverse some of the losses from the previous days. However, Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, cautioned that global uncertainties, particularly around US tariff policies, would keep investors on edge. While the local indices showed positive momentum, global events, especially the potential impact of US trade policies on major economies like India, would continue to be a key factor in shaping market movements.

Despite a brief hiccup, the market managed to trade positively as optimism from global markets filtered through to the local indices. Hong Kong, Tokyo, Seoul, and Shanghai all closed in the green, adding to the positive sentiment. Additionally, the US stock markets had ended sharply higher on March 15, 2025, providing further tailwinds for global equities.

Positive Macro Factors Supporting the Market

In the short-term, the market trend appeared stable, with a positive bias. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the declining Foreign Institutional Investor (FII) outflows, along with India’s strong economic performance, played a crucial role in supporting market sentiment. Vijayakumar pointed to several positive macroeconomic factors, including:

• A 6.2% growth in Q3 FY25 GDP,
• A 5% surge in January IIP (Index of Industrial Production),
• A decline in February CPI inflation to 3.61%.

These factors provided a solid macro backdrop for the market, but Vijayakumar also noted that while the outlook was positive, it was unlikely to sustain a full-blown rally in the market. Investors should remain cautious as the overall global economic environment remains uncertain.

FII Outflows and Oil Market Movements

On March 14, 2025, Foreign Institutional Investors (FIIs) sold equities worth Rs 792.90 crore, contributing to the overall volatility in the Indian market. The global oil benchmark, Brent crude, gained 0.64% to USD 71.03 a barrel, which could impact inflationary pressures and investor sentiment, particularly in the energy sector.

A Look at Previous Market Movements

The day before the rally, on March 13, the Sensex had fallen by 200.85 points to end at 73,828.91, while the Nifty had declined by 73.30 points, closing at 22,397.20. The market had been under pressure due to a combination of global uncertainties and domestic factors.

Conclusion: A Mixed Outlook for Indian Markets

While the market saw a positive rebound on March 17, investors should be cautious. The global economic outlook, particularly regarding the US’s trade policies and rising oil prices, continues to pose risks. However, India’s strong economic performance, as indicated by recent GDP and industrial data, offers some support for the market in the short term.

The next few weeks will be critical as investors assess both local and global factors, and the upcoming months could provide more clarity on whether the market can sustain its positive momentum or if further volatility lies ahead.