The Indian stock market witnessed a robust rally on Thursday, March 6, 2025, as benchmark indices extended their gains for the second consecutive session. The Sensex surged 610 points to close at 74,340, while the Nifty50 climbed 207 points to settle above the 22,500 mark at 22,544.70. The rally was fueled by positive global cues, a rebound in heavyweight stocks, and sectoral gains across the board.
Market Highlights: A Day of Broad-Based Gains
The trading session began on a strong note, with the Sensex opening higher by over 300 points. However, early volatility saw the indices dip into the red before a sharp recovery in the second half of the session. By the closing bell, all sectoral indices were trading in the green, with metals, oil & gas, and pharmaceuticals leading the charge.
- Sensex: Gained 609.86 points (0.83%) to close at 74,340.09.
- Nifty50: Rose 207.40 points (0.93%) to end at 22,544.70.
- Nifty Bank: Added 137.75 points (0.28%) to settle at 48,627.70.
The broader markets also participated in the rally, with the BSE Midcap index rising 0.6% and the Smallcap index jumping 1.6%. Market breadth remained positive, with 2,857 stocks advancing, 979 declining, and 104 remaining unchanged.
Sectoral Performance: Metals and Energy Shine
The Nifty Metal index emerged as the top performer, surging 2.34%, driven by gains in Hindalco Industries and Tata Steel. The Nifty Oil & Gas index also climbed 2%, supported by a rebound in crude oil prices and strong performances from BPCL and NTPC.
Other notable sectoral gainers included:
- Nifty Pharma: Up 1.8%
- Nifty FMCG: Up 1.5%
- Nifty Auto: Up 0.7%
The only laggard was the Nifty IT index, which inched up just 0.19%, weighed down by losses in Tech Mahindra and Infosys.
Top Gainers and Losers
- Biggest Gainer: Asian Paints surged 4.78% to Rs 2,267.70, driven by falling crude oil prices, which are expected to boost margins for paint manufacturers.
- Biggest Loser: Tech Mahindra fell 2.25% to Rs 1,503.45, reflecting concerns over slowing IT demand.
Other major gainers included Coal India, Hindalco Industries, BPCL, and NTPC. On the flip side, Trent, Bharat Electronics, HDFC Life, and Kotak Mahindra Bank were among the top losers.
Global Cues: Tariff Relief and Oil Cool-Off
The rally in Indian markets was supported by positive global cues. U.S. President Donald Trump’s decision to delay implementing higher tariffs on automakers from Canada and Mexico provided relief to global markets. Additionally, a decline in crude oil prices and a weaker U.S. dollar index boosted investor sentiment.
Brent crude prices hovered around $69.58 per barrel, down from recent highs, easing concerns over inflation and input costs for Indian companies. The dollar index fell to a four-month low, further supporting emerging markets like India.
Domestic Factors: RBI’s Liquidity Boost
The Reserve Bank of India (RBI) announced measures to inject liquidity into the banking system, including open market operations (OMOs) worth Rs 1 lakh crore and a USD/INR buy/sell swap auction of $10 billion. These steps are expected to infuse around Rs 1.8-1.9 lakh crore into the system, addressing potential liquidity tightness due to financial year-end outflows.
Expert Views: Cautious Optimism
Market experts remain cautiously optimistic about the sustainability of the rally.
- Ajit Mishra, SVP of Research at Religare Broking: “The recent cool-off in crude oil and the dollar, along with potential negotiations on U.S. tariffs, has improved global sentiment. However, Nifty may face resistance around the 22,700 level, while the 22,250-22,400 zone will act as support.”
- Rupak De, Senior Technical Analyst at LKP Securities: “The Nifty is filling the recent gap on the daily chart, and the RSI is recovering from a historical low. The sentiment appears to favor the bulls, with the index potentially moving towards 23,750–23,800 in the short term.”
- Vinod Nair, Head of Research at Geojit Financial Services: “The Indian indices exhibited resilience due to positive global cues, a correction in crude oil prices, and strength in heavyweight banking and consumption stocks.”
Rupee Weakens Slightly
The Indian rupee closed 15 paise lower at 87.11 against the U.S. dollar, compared to the previous close of 86.96. The depreciation was attributed to selling pressure from foreign institutional investors (FIIs) and importers’ dollar demand.
What’s Next for the Markets?
While the markets have shown signs of recovery, uncertainties remain. The ongoing U.S.-China trade tensions, fluctuating crude oil prices, and FII outflows could weigh on sentiment. However, domestic factors such as improving economic indicators, RBI’s liquidity measures, and strong corporate earnings provide a cushion.
Investors are advised to focus on stock selection and maintain disciplined position sizing. Sectors like metals, energy, and pharmaceuticals are expected to remain in focus, while IT and realty may face headwinds.
Key Levels to Watch
- Nifty50: Immediate resistance at 22,700; support at 22,250.
- Bank Nifty: Resistance at 48,660; support at 47,840.
Conclusion
The Indian stock market’s strong performance on March 6 reflects a combination of global optimism and domestic resilience. While challenges persist, the bulls seem to be back in control, at least for now. As always, investors should stay vigilant and adapt to evolving market dynamics.
Stay tuned for more updates as we continue to track the pulse of the markets.
Disclaimer: The views and recommendations expressed in this article are those of market analysts and do not reflect the official stance of any financial institution. Investors are advised to consult their financial advisors before making any investment decisions.