Indian stock markets extended their gains for the second consecutive session on March 6, as positive global cues and a drop in crude oil prices lifted investor sentiment.
Recovering from early losses, the 30-share BSE Sensex jumped 609.86 points or 0.83 per cent to settle at 74,340.09. During the day, it surged 660.57 points or 0.89 per cent to hit a high of 74,390.80.
The broader Nifty of NSE advanced 207.40 points or 0.93 per cent to close at 22,544.70. In the session, the 50-share barometer jumped 219.15 points or 0.98 per cent to hit an intraday high of 22,556.45.
The rally in Indian equities was supported by easing global concerns, including U.S. President Donald Trump’s decision to grant a one-month exemption to automakers in Canada and Mexico from his proposed 25 pc tariffs.
This move led to a rebound in U.S. and European markets, which also boosted investor confidence in Asia.
Another major factor driving the markets was the fall in crude oil prices, with Brent crude dropping below $70 per barrel for the first time in three years.
This decline fueled a rally in stocks related to the oil sector, including paint companies and oil marketing firms. Additionally, banking and non-banking financial stocks saw gains after the Reserve Bank of India (RBI) announced liquidity measures worth ₹1.9 trillion to support the banking system.
The weakening of the U.S. dollar index, which slipped to around 104—its lowest level in four months—also contributed to the positive sentiment. This helped Indian metal stocks extend their winning streak, as a weaker dollar typically boosts demand for commodities.
Global brokerage Jefferies noted that India has historically outperformed other emerging markets within 90 to 180 days after periods of underperformance. It added that the country’s valuation premium is now closer to average levels, making Indian equities more attractive to foreign investors.
Among sectoral indices, oil and gas stocks led the rally, driven by gains in Bharat Petroleum Corporation Ltd. (BPCL), Hindustan Petroleum Corporation Ltd. (HPCL), and Indian Oil Corporation Ltd. (IOC), which rose around 5 pc each.
The Nifty Oil & Gas index emerged as the best-performing sector, closing 2.60 pc higher. Metal stocks also continued their upward trend, with the Nifty Metal index rising 2.34 pc to 8,888 points.
Other sectors, including pharma, FMCG, media, auto, and PSU banks, posted gains ranging between 0.66 pc and 1.47 pc. However, real estate stocks remained under pressure, with the Nifty Realty index slipping 0.17 pc, making it the only sector to end in the red.
Market analysts attributed the strong performance to improving global conditions, liquidity support from the RBI, and a correction in crude oil prices.
Vinod Nair, Head of Research at Geojit Financial Services, said that a combination of positive factors, including Trump’s relaxed trade stance, a weakening dollar, and China’s economic stimulus, contributed to the market's resilience.
On the technical front, experts believe the Nifty 50 could continue its upward movement in the near term. Rupak De, Senior Technical Analyst at LKP Securities, noted that the index is filling the recent gap on the daily chart and that the Relative Strength Index (RSI) is recovering from historically low levels.
He added that unless the Nifty falls below 22,300, the bullish sentiment is likely to remain strong, with an upside potential towards 23,750–23,800.
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