Indian stock markets continued their upward momentum for the third consecutive session on March 19, with the Nifty 50 and Sensex closing at three-week highs.
Gains in financial and real estate stocks contributed to the positive sentiment, while midcap stocks outperformed the broader market.
Despite weak cues from Wall Street, Indian equities remained resilient, supported by strong macroeconomic indicators. Most sectoral indices ended in positive territory, with the exception of IT and FMCG stocks.
The metal sector witnessed significant interest following the Directorate General of Trade Remedies’ recommendation of a 12 percent safeguard duty on specific steel imports to curb inflows.
The 30-share BSE benchmark Sensex climbed 147.79 points or 0.20 per cent to settle at 75,449.05. During the day, it advanced 267.12 points or 0.35 per cent to 75,568.38. The NSE Nifty rose 73.30 points or 0.32 per cent to 22,907.60.
Public sector defence stocks witnessed a strong rally, with shares of Garden Reach Shipbuilders, Mazagon Dock, and Bharat Dynamics surging by up to 20 percent.
Renewed investor interest in the sector was fuelled by discussions on a potential India-US bilateral trade deal and Germany’s increased defence spending.
Global factors also played a role in market movements, as investors awaited the outcome of the US Federal Reserve's policy meeting. The central bank is expected to maintain interest rates at current levels while updating its economic outlook.
With rising global trade tensions, especially amid former US President Donald Trump's proposed tariffs, market participants are anticipating a cautious approach from the Fed.
Among the 13 major sectoral indices, 11 ended in positive territory. Nifty Realty led the gains with a 2.80 percent rise, followed by Nifty PSU Bank, Nifty Consumer Durables, Nifty Metal, Nifty Media, and Nifty Oil & Gas, all of which registered gains between 1 and 2 percent.
On the losing side, IT stocks saw a decline, with Nifty IT slipping by 1 percent, ending a two-day winning streak. A cautious outlook from global brokerage Citi weighed on the sector, as concerns over the US economy persisted.
Citi noted that, despite a 22 percent correction from its peak, the Nifty IT index continues to trade at a significant premium compared to the broader market, raising concerns over valuations.
Market analysts observed that the recent rebound was partly driven by valuation adjustments. Vinod Nair, Head of Research at Geojit Financial Services, commented that the domestic market sustained its positive momentum, supported by fundamental factors.
He pointed out that metal stocks gained traction following the government’s decision to impose additional duties on steel imports.
Technical analysts expect the Nifty 50 to find immediate support at 22,800, followed by 22,700, while the 50-day exponential moving average at 23,000 may act as a resistance level. Given the prevailing optimism, traders have been advised to adopt a strategy of buying on dips.
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