Benchmark indices closed higher on Monday, with the Sensex ending 341.04 points or 0.46 per cent higher at 74,169.95, and the Nifty 50 rising 111.55 points or 0.5 per cent to 22,508.75, boosted by strong performances in pharmaceutical and financial stocks.

Dr. Reddy’s Laboratories emerged as the top gainer on the NSE, surging 3.93 per cent, followed by SBI Life which rose 3.89 per cent. Bajaj Finserv gained 3.74 per cent, while Trent and Axis Bank climbed 2.54 per cent and 2.36 per cent respectively.

On the flip side, Wipro was the biggest loser, dropping 1.53 per cent. BPCL declined 1.13 per cent, Hero MotoCorp fell 1.11 per cent, ITC shed 1.03 per cent, and Nestle India decreased 0.96 per cent.

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“The national market experienced a positive trading session, driven by strong performance in the healthcare and financial sectors,” said Vinod Nair, Head of Research at Geojit Financial Services. “However, lower participation from domestic investors due to tariff-related uncertainties may cause the market to fluctuate within a range in the near term.”

Trading patterns revealed more stocks declining than advancing, with 2,507 declines compared to 1,605 advances on the BSE. A concerning 489 stocks hit their 52-week lows, while only 101 reached 52-week highs.

The Nifty Bank index rose 0.61 per cent to 48,354.15, while Nifty Financial Services climbed 1.03 per cent to 23,529.25. Sectoral performance showed Nifty Pharma and Healthcare leading with gains of over 1.5 per cent, while the Media index emerged as the top loser, shedding nearly 1 per cent.

“India’s benchmark equity indices opened higher, tracking cues from Asian peers and US market,” noted Bhavik Patel, Senior Research Analyst at Tradebulls Securities. “Market though faced hurdle near its resistance zone of 22,600 with profit booking emerging and market unwinding nearly 50 per cent of its opening gains.”

Global factors played a significant role in Monday’s market movements. “On the global front, sentiment received a boost as China unveiled a strategic action plan on Sunday to stimulate domestic demand,” explained Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity. “However, uncertainty looms as investors remain watchful ahead of the U.S. Federal Reserve’s interest rate decision later this week.”

The rupee strengthened against the dollar, trading at 86.86, up by 0.27 rupees. “Rupee traded strong supported by a weak dollar index and lower outflows in the secondary capital markets in recent days,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “The rupee range is expected between 86.20-86.90, with momentum favoring stability unless major surprises emerge from US data or policy decisions.”

Gold prices continued their bullish run, surpassing ₹88,000 in MCX, supported by Comex gold crossing the $3,000 mark. “The rally is fueled by continued US tariffs on various products across multiple countries, with the latest focus on European goods like alcohol and cognac,” added Trivedi.

Technical analysts remain cautiously optimistic about the market’s trajectory. “On daily charts, it has formed a bullish candle, and on intraday charts, it is holding a higher bottom formation, which is largely positive,” said Shrikant Chouhan, Head Equity Research at Kotak Securities. “As long as the market is trading above 22,350/73,800, the bullish sentiment is likely to continue.”

Looking ahead, market participants are closely monitoring upcoming central bank meetings. “Investors are closely watching the upcoming FED and BOJ meetings, with expectations leaning towards maintaining the current stance due to inflation risks associated with tariff uncertainties,” observed Devarsh Vakil, Head of Prime Research at HDFC Securities.

“To regain bullish momentum, Nifty needs to overcome the resistance level at 22700 in the coming days, aiming for an immediate target of 23000,” Vakil added. “On the downside, the support level remains around 22245-22300.”

Published on March 17, 2025