Market Wrap: Nifty snaps 10-days losing streak, Sensex Closed 740 points Higher!

Indian benchmark indices, Sensex and Nifty, traded higher on Wednesday, tracking gains in Asian markets.

Market Update at 3:40 PM: Indian benchmark indices, Sensex and Nifty, traded higher on Wednesday, tracking gains in Asian markets. On Tuesday, this rebound followed Nifty's longest (10-days) losing streak in three decades, driven by escalating global trade tensions following U.S. President Donald Trump's tariff imposition on key trading partners.

Technically, the Index formed a strong bullish candlestick pattern, suggesting a continuation of the current trend (assuming no major disruptions, such as a worsening of the tariff war). The immediate support level for the Index is seen at 22,200, while 22,500 will act as a key resistance level.

Sensex closed higher, gaining over 700 points or 1.01 per cent, concluding at the 73,728.5 level, while Nifty also closed higher, gaining over 250 points or 1.15 per cent, concluding at 22,337.30. 

Broader indices closed higher with Nifty Mid-cap surging by 2.37 per cent, while Nifty Small-cap grew by 2.89 per cent.

Market volatility, as indicated by India VIX, has declined by 0.78 per cent, reflecting a decrease in market volatility.

Nifty Metal, Nifty Media and Nifty PSU Bank were among the top gainers. All 13 major sectors gain, with export-focused IT stocks were up; NIfty IT index is the biggest boost for the benchmark Nifty 50

Adani Ports, Tata Steel and Adani Enterprises were among the top gainers while Bajaj Finance, Indusind Bank and HDFC Bank were among the top losing stocks from the Nifty 50.

About 2,461 stocks were advancing as against 436 stocks that were declining, thus indicating an optimistic sentiment in the broader market.

Market Update at 2:10 PM: In the current trading session, the benchmark indices trade higher with the Sensex surging over 0.95 per cent, while Nifty also jumped by 1.06 per cent. Similarly, Nifty Mid-cap has soared by 2.04 per cent, while Nifty Small-cap trades higher by 2.38 per cent

India VIX is currently trading lower by 2 per cent, indicating a slight decrease in market volatility.

Nifty Metal, Nifty Energy and Nifty Media are among the top gainers. All the 13 major sectors advanced.

Adani Ports, Power Grid and Mahindra & Mahindra are among the top gainers while Bajaj Finance, Indusind Bank and HDFC Bank are among the top losing stocks from the Nifty 50.

About 2,433 stocks are advancing against 381 stocks that are declining, thus indicating a positive sentiment in the broader market.

Market Update at 12:30 PM: After extending loss of ten trading sessions, the benchmark indices trade near their day high with the Sensex surging over 700 points or 1 per cent, while Nifty soared by 280 points or 1.27 per cent. Similarly, Nifty Mid-cap has also strongly jumped by 2.08 per cent, while Nifty Small-cap is also experiencing a significant surge of 2.3 per cent.

The Indian benchmark indices led by information technology stocks, experts anticipating a short-term rebound due to attractive buying opportunities after the recent slide. If the gains hold, Nifty will snap its longest daily losing streak on record in which it dropped 4 per cent in 10 sessions. With this strong rebound, the relative strength index of Nifty 50 bounces back to trade above oversold zone. 

India VIX has slipped by 1.79 per cent, indicating a slight decrease in market volatility.

All the 13 major sectors advanced, with the Nifty IT index rising over 2 per cent. The Nifty IT index lost 8.4 per cent in the last 10 sessions.

Stocks from the IT and Telecom, Infosys (+27.8 pts) and Bharti Airtel (+23.31), traded in positive territory to lift the index higher. On the other hand, index heavyweights, HDFC Bank (- 13.57 pts) and ICICI Bank (-11.70 pts) remained laggards of the index.  

About 2,425 stocks are advancing as against 307 stocks that are declining, thus indicating a positive sentiment in the broader market.
 

Market Update at 11:10 AM: In the current trading session, the benchmark indices trade higher with the Sensex surging by 0.79 per cent, while Nifty also jumped by 0.84 per cent. Similarly, Nifty Mid-cap has significantly zoomed by 1.75 per cent, while Nifty Small-cap has also substantially surged by 2 per cent.

India VIX is currently trading lower by 1.46 per cent, indicating an increase in market volatility.

Nifty Metal, Nifty Energy and Nifty PSU are among the top gainers with all sectors trading in positive territory.

Trent, Mahindra & Mahindra and Adani Ports are among the top gainers while Bajaj Finance, Shriram Finance and HDFC Bank are among the top losing stocks from the Nifty 50.

About 2,341 stocks are advancing as against to 316 stocks that are declining, thus indicating a positive sentiment in the broader market.

Market Update at 9:30 AM: Market Update at 9:30 AM: On Wednesday, Indian markets initiated the trading on a positive note with the Sensex opening moderately higher by 0.02 per cent, while Nifty opened slightly lower by 0.04 per cent. The benchmark indices led by information technology stocks and tracking other Asian peers as the U.S. Commerce chief hinted at some relief on Canada and Mexico tariffs.

Similarly, Nifty Mid-Cap opened marginally higher by 0.84 per cent, while Nifty Small-Cap also opened moderately higher by 0.93 per cent.

India VIX has slipped by 2.08 per cent, indicating a slight decrease in market volatility.

Nifty IT, Nifty PSU Bank and Nifty Auto are among the top gaining sectors while only NIfty Finance is among the Top Losers.

HCL Technologies, Mahindra & Mahindra and Tech Mahindra are among the Top Gainers while Bajaj Finance, Bajaj Finserv and Shriram Finance are among the top losing stocks from the Nifty 50.

About 1,983 stocks are advancing as against to 336 stocks that are declining, thus indicating a positive sentiment in the broader market.

Pre-Market Update at 7:45 AM: The GIFT Nifty suggests a slightly negative opening for the Indian benchmark indices, indicating a loss of 20 points. GIFT Nifty futures trade at 22,120 points after hitting a low of 21,827 points, hinting at cautious sentiment ahead of market opening.

Global Markets & Trade War Developments
US stock futures climbed after Commerce Secretary Howard Lutnick indicated a potential compromise on tariffs between the US, Canada, and Mexico. This follows Trump’s 25 per cent tariffs on Canadian and Mexican goods, alongside an additional 10 per cent duty on Chinese imports, which took effect on Tuesday. These measures have triggered retaliatory actions, intensifying concerns over a global trade war that could impact economic growth.

On Tuesday, US equity markets fell as trade tensions escalated. The Dow Jones Industrial Average declined 1.55 per cent to 42,521, while the S&P 500 dropped 1.22 per cent to 5,778.2. The Nasdaq Composite slipped 0.35 per cent to 20,352.51. Financials led the declines, whereas the technology sector managed to post marginal gains. Meanwhile, US Treasury yields were mixed, with the 10-year yield rising by 8.6 basis points to 4.245 per cent, while the two-year yield eased by 2.6 basis points to 3.984 per cent.

Asian Markets Mixed Amid Trade Tensions
Asian markets traded mixed on Wednesday, mirroring the overnight declines on Wall Street. Japan’s Nikkei 225 gained 0.16 per cent, while the Topix index rose 0.11 per cent. South Korea’s Kospi advanced 0.41 per cent, with the Kosdaq rallying 1.22 per cent. In contrast, Hong Kong’s Hang Seng index indicated a stronger opening, surging over 2 per cent.

China’s Economic Policy & Japan's Services PMI
China maintained its 2025 GDP growth target at 5 per cent, increasing fiscal support. The budget deficit is set at 4 per cent of GDP, up from 3 per cent in 2024. Beijing will issue EUR 1.3 trillion (USD 179 billion) in special treasury bonds, while local governments can issue EUR 4.4 trillion in special debt. Meanwhile, Japan’s services sector expanded at its fastest pace in six months, as the au Jibun Bank Services PMI rose to 53.7 in February from 53.0 in January, exceeding the flash estimate of 53.1.

Crude Oil Declines as OPEC+ Plans Production Increase
WTI crude oil closed at a three-month low as the US imposed tariffs on key trading partners and OPEC+ reaffirmed plans to return 2.2 million barrels per day of production to the market next month. Brent crude oil declined 0.15 per cent to USD 70.93 per barrel, while US WTI crude futures fell 0.66 per cent to USD 67.81 per barrel.

Currency & Institutional Flows
The Dollar Index in futures rose 0.12 per cent to 105.64, while the rupee remained near Rs 87.57 per dollar. On March 04, 2025, Foreign Institutional Investors (FIIs) sold shares worth Rs 3,405.82 crore, whereas Domestic Institutional Investors (DIIs) absorbed the selling, buying shares worth Rs 4,851.43 crore.

F&O Ban List
For March 05, 2025, Manappuram Finance is the only stock banned for trading in the F&O segment.

Disclaimer: This article is for informational purposes only and not investment advice.