Equity markets witnessed a strong uptrend on Friday, marking the fifth consecutive day of gains as foreign institutional investors (FIIs) re-entered the market. The BSE Sensex closed 557.45 points or 0.73 per cent higher at 76,905.51, while the NSE Nifty 50 ended at 23,350.40, up 159.75 points or 0.69 per cent, bouncing back from recent bearish sentiment.
Investors brushed off negative global cues and continued their buying spree, encouraged by a potential reduction in risk-free rates and a weaker dollar index. Vinod Nair, Head of Research at Geojit Financial Services, noted that FIIs were turning into net buyers on the back of dovish signals from the US Fed, hinting at possible rate cuts later in the year.
Foreign portfolio investors made a significant comeback, purchasing equities worth ₹3,239.14 crore on March 20, 2025. Meanwhile, domestic institutional investors were seen as net sellers during the same period. The broader market outperformed the benchmarks, with the Nifty Midcap Select rising 1.25 per cent and the Nifty Next 50 gaining 0.88 per cent.
Banking and financial stocks performed well, with the Nifty Bank rising 1.06 per cent and Nifty Financial Services closing 1.07 per cent higher. SBI Life emerged as the top gainer on the NSE, followed by NTPC, ONGC, Bajaj Finance, and BPCL. On the other hand, Trent led the losers, followed by M&M, Wipro, Hindalco, and Infosys.
Market breadth remained positive, with more stocks advancing than declining on the BSE. Market capitalisation also witnessed significant growth, with the total market cap rising to ₹40,924,873.00 crore on March 20, from ₹39,317,232.22 crore on March 17. The rupee strengthened against the US dollar, closing at 85.94.
Looking ahead, analysts are optimistic about the market momentum, citing technical indicators that point to further upside potential. Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, highlighted key support and resistance levels for the Nifty index. Rupak De, Senior Technical Analyst at LKP Securities, suggested that a breakout above 23,400 could lead to further gains.
Overall, the market sentiment remains positive as investors focus on improving macroeconomic indicators, valuation corrections, and expected earnings growth. The week concluded on a strong note, with investors hopeful for sustained gains in the Indian equity markets.
