The stock market started the day on a positive note, with benchmark indices opening slightly higher on Wednesday before turning flat. While there were gains seen in metals and banking stocks, the IT sector dragged down the overall performance. The BSE Sensex was up 0.11 per cent at 75,382.33, while the NSE Nifty rose by 0.17 per cent to 22,873.45 in early trade.
This comes after a strong rally in the previous session, where the Sensex surged 1,131 points and the Nifty gained 326 points. Foreign Institutional Investors (FIIs) turned net buyers after 17 consecutive sessions of selling, purchasing equities worth Rs 1,462.96 crore on March 18, while Domestic Institutional Investors (DIIs) bought shares worth Rs 2,028.15 crore.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, mentioned, “Despite recent strength, a soft Nifty opening is likely as investors turn cautious, with focus on the FOMC meeting and gold prices hitting fresh highs. Bullish consolidation is expected, though volatility may persist.”
The IT sector was the major laggard in today’s session, with TCS leading the decline by 1.89 per cent. Other IT heavyweights like Infosys, HCL Technologies, and Tech Mahindra also saw significant drops.
On the positive side, Tata Steel and IndusInd Bank topped the gainers’ list, with gains of 1.67 per cent each. Bajaj Finance, BPCL, and Apollo Hospitals also saw upward movement.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the market sustainability and the positive domestic macros favoring the rally. He also highlighted the uncertain external factors that could impact the markets in the future.
The broader market showed better momentum in the previous session, with the Nifty Midcap gaining 2.2 per cent and Nifty SmallCap surging 2.72 per cent. All sectors closed positively, led by gains in Bank Nifty and PSU Banks.
In commodities, gold prices reached a fresh all-time high while silver hit a 12-year high, driven by increased safe-haven demand following renewed tensions in the Middle East.
Market participants are keeping a close watch on the upcoming Federal Reserve meeting outcome and potential developments regarding U.S. trade policies. The global economic outlook remains cautious, with the OECD trimming its projection for global growth, which could impact Indian markets due to foreign trade relations.
Shrikant Chouhan, Head Equity Research at Kotak Securities, advised traders to adopt a tactical approach, suggesting buying on intraday corrections and selling on rallies. He highlighted key support and resistance levels for traders to consider in their strategies.
The day’s trading session is expected to be influenced by various factors, including global economic conditions, trade policies, and market sentiment. Investors are advised to stay informed and make well-informed decisions based on the latest developments in the financial markets.
Published on March 19, 2025.
