Indian Benchmark Indices Hold Early Gains as Financial Stocks Lead the Rally!
About 1242 stocks are advancing as against 1574 stocks that are declining, thus indicating a negative sentiment in the broader market.
Market Update at 12:40 PM: Indian markets were holding gains, driven by a broad-based rally led by financial stocks. The upbeat sentiment was supported by a rebound in U.S. equities and new measures announced by China to boost consumption.
As of 12.20 p.m., the Nifty 50 was up 0.41 per cent at 22,487, while the Sensex advanced 0.49 per cent to 74,193. India’s wholesale price index (WPI)-based inflation rose to 2.38 per cent in February 2025, up from 2.31 per cent in January, primarily due to higher fuel and power costs, according to data from the Ministry of Commerce and Industry. The month-on-month change in WPI stood at 0.06 per cent.
While WPI tracks price changes at the wholesale level, focusing on manufactured goods, fuel, and primary articles, retail inflation (CPI) eased to 3.61 per cent in February, mainly due to lower food prices.
With inflation moderating, the market anticipates further rate cuts in the RBI’s upcoming Monetary Policy Committee meeting in April, following the 25 basis points repo rate reduction in February.
India VIX, which jumped above the 13.5 mark, up by 1.84 per cent during the day.
By midday, the top contributors to market gains were ICICI Bank (+36.28 pts), Axis Bank (+13.9 pts) and Bajaj Finance (+9.81 pts). On the other hand, Reliance Industries (-17.5 pts) and ITC (-7.78 pts) were trading in negative territory.
Broader indices were trading in green, with Nifty Mid-Cap surging 0.38 per cent and Nifty Small-Cap down 0.42 per cent. Sectoral performance was mixed, nine out of 17 indices rose, led by Nifty Pharma and Nifty Healthcare, while Nifty Oil & Gas tanked 0.53 per cent. Nifty FMCG was plunged by 0.48 per cent.
About 1242 stocks are advancing as against 1574 stocks that are declining, thus indicating a negative sentiment in the broader market.
Market Update at 10:30 AM: India's benchmark indices opened higher on Monday, supported by gains in financial stocks and positive cues from Asian markets following China's latest stimulus measures to boost consumption.
As of 10:12 a.m., the Nifty 50 was up 0.63 per cent at 22,534, while the Sensex advanced 0.59 per cent to 74,268. Among major sectors, 14 out of 17 recorded gains, with pharma rising 1.64 per cent. IndusInd Bank surged 3 per cent after the Reserve Bank of India reaffirmed the bank’s stable financial position.
Broader markets also saw modest gains, with small-cap and mid-cap indices climbing around 0.7 per cent each.
In global markets, U.S. stocks rebounded on Friday amid bargain hunting after recent losses, which contributed to positive sentiment in Asian equities. Investor confidence was further lifted by China's announcement of a "special action plan" on Sunday aimed at revitalizing its economy.
In today’s trade India VIX has jumped above the 13.50 mark, up by 2 per cent, indicating an increase in market volatility.
Nifty Pharma, Nifty Healthcare and Nifty Finance are among the Top Gainers while Nifty IT, Nifty PSU Banks and Nifty FMCG are among the Top Losers.
Indusind Bank, Dr Reddy’s Lab and Bajaj Finserv are among the top gainers while BPCL, Nestle India and Britania are among the top losing stocks from the Nifty 50.
About 1,620 stocks are advancing as against 1,038 declining stocks, thus indicating a Positive sentiment in the broader market.
Pre-Market Update at 7:45 AM: Sensex and Nifty 50 are set for a positive opening on Monday, following a rally in global markets. Asian markets traded higher, and US stocks saw a strong rally on Friday, with the S&P 500 and Nasdaq recording their largest single-day percentage gains since the day following the US presidential election.
The U.S. stock market closed significantly higher on Friday, driven by a strong rally in major tech-related stocks. The Dow Jones Industrial Average climbed 674.62 points, or 1.65 per cent, to finish at 41,488.19. The S&P 500 gained 117.42 points, or 2.13 per cent, reaching 5,638.94, while the Nasdaq Composite advanced 451.07 points, or 2.61 per cent, to settle at 17,754.09.
This week, investors will focus on several important stock market factors, including the US Federal Reserve's policy decision, potential tariff announcements from Donald Trump, foreign fund inflows, domestic and global economic data, and other significant global market trends.
China Announces Stimulus Measures
China’s State Council introduced a “special action plan” aimed at stimulating domestic consumption. The initiative includes steps to enhance household income and implement a childcare subsidy program. The directive, distributed to various regions and departments, focuses on expanding consumer spending, boosting purchasing power, and reducing financial burdens to drive economic growth.
Asian markets moved higher, taking cues from Wall Street’s rally. Japan’s Nikkei 225 remained flat, while the Topix index climbed 1.22 per cent. South Korea’s Kospi index jumped 1.5 per cent, with the Kosdaq edging up 0.43 per cent. Futures for Hong Kong’s Hang Seng index signaled a positive start.
Crude oil prices climbed more than 1 per cent following the U.S. pledge to continue strikes against Yemen’s Houthis until the Iran-backed group halts its attacks on shipping. Brent crude futures increased by 1.02 per cent to USD 71.30 per barrel, while U.S. West Texas Intermediate (WTI) crude futures advanced 1.1 per cent to USD 67.90 per barrel.
The US dollar hovered close to a five-month low against its major peers. The dollar index was almost flat at 103.31, while USD/INR was trading at 86.91.
On March 13, 2025, foreign institutional investors (FII) sold shares worth Rs 792.90 crore, while domestic institutional investors (DII) bought shares worth Rs 1,723.82 crore.
Stocks that are banned for trading in the F&O segment on March 17, 2025, are BSE, IndusInd Bank, Hindustan Copper, Manappuram Finance, SAIL, etc.
Disclaimer: The article is for informational purposes only and not investment advice.