Sensex, Nifty Extend Rally for Third Straight Session on March 18 as Global Cues Improve

Benchmark Indices End Nearly 1% Higher​

Mumbai, March 18: Benchmark equity indices Sensex and Nifty closed nearly 1 percent higher on Wednesday, marking their third consecutive day of gains, supported by easing crude oil prices and firm global market trends.

The 30-share BSE Sensex surged 633.29 points or 0.83 percent to settle at 76,704.13. During intraday trade, the index climbed as much as 929.38 points or 1.22 percent to touch 77,000.22.

The NSE Nifty advanced 196.65 points or 0.83 percent to close at 23,777.80.

IT, Realty and Auto Stocks Lead Market Gains​

Among Sensex constituents, major gainers included Eternal, Tech Mahindra, Infosys, Mahindra and Mahindra, HCL Tech, Adani Ports, Tata Consultancy Services and Axis Bank.

On the downside, NTPC, Hindustan Unilever, Sun Pharma and HDFC Bank ended lower.

Sectorally, IT stocks led the rally, with BSE Focused IT rising 2.95 percent and the broader IT index gaining 2.82 percent. Realty climbed 2.67 percent, followed by services at 2.45 percent, telecommunication at 2.44 percent and consumer discretionary at 2.08 percent.

Metal was the only sector that closed in negative territory.

Broader Markets Outperform Benchmark Indices​

The broader market indices outperformed the benchmarks, with the BSE MidCap Select index jumping 2.39 percent and the SmallCap Select index rising 1.59 percent.

Market breadth remained strong, with 3,202 stocks advancing, 1,088 declining and 142 remaining unchanged on the BSE.

Market Driven by Value Buying and Short Covering​

Markets extended their recovery supported by buying interest after the recent sell-off. The rebound remained broad-based, aided by short covering and value buying, with notable strength in IT, realty and auto sectors.

The IT sector played a crucial role in driving the day’s gains, contributing significantly to the overall market recovery.

Global Markets Support Sentiment​

Global cues remained supportive throughout the session. Asian markets ended higher, with South Korea’s Kospi surging 5 percent and Japan’s Nikkei 225 rising 2.87 percent. China’s Shanghai Composite and Hong Kong’s Hang Seng also closed in positive territory.

European markets were trading higher, while US markets had ended in the green on Tuesday.

Crude Oil Eases, FIIs Remain Sellers​

Brent crude, the global oil benchmark, edged lower by 0.10 percent to USD 103.3 per barrel, offering some relief to market sentiment.

Foreign Institutional Investors (FIIs) continued to offload equities, selling shares worth Rs 4,741.22 crore on Tuesday. However, Domestic Institutional Investors (DIIs) provided support by purchasing equities worth Rs 5,225.32 crore.

Caution Persists Amid Global Uncertainties​

Despite the ongoing rally, market participants remain cautious due to geopolitical tensions, weakness in the rupee and potential volatility in crude oil prices.

The near-term trend suggests that while the relief rally may continue, its sustainability will depend on developments in global geopolitical conditions, crude oil price movements and institutional investment activity.

Previous Session Recap​

In the previous session on Tuesday, the Sensex had climbed 567.99 points or 0.75 percent to settle at 76,070.84, while the Nifty rose 172.35 points or 0.74 percent to close at 23,581.15.