Benchmarks Surge Nearly 2% as Oil Rebounds, Global Signals Support

Mumbai, March 24: Indian markets ended stronger on Tuesday, with the BSE Sensex climbing 1,372 points (1.89%) and the Nifty surging 400 points (1.78%), tracking positive cues from geopolitical developments surrounding the US-Iran conflict.

Broader markets outperformed frontline indices as renewed investor interest lifted technology and midcap stocks.

The Nifty Bank rose 2.27%, while the Nifty Midcap index surged 2.86%. The Nifty Financial Services index also ended 2.18% higher.

Sectorally, the Nifty Media, Nifty Private Bank, and Nifty Auto indices outperformed their peers, while the Nifty Pharma index was among the laggards.

Defence stocks underperformed, and the Nifty FMCG index edged down 0.05% by the close of trade.

NIFTY VIX eased significantly today from Monday’s sharp spike, confirming cooling market anxiety amid equities’ strong rebound. 

India’s private sector activity in March slowed to its lowest level since October 2022, as weaker domestic demand for goods and services offset the sharpest rise in international orders, according to the HSBC flash Purchasing Managers’ Index compiled by S&P Global.

Global Cues

Investors are now awaiting policy decisions from major global central banks, including the Federal Reserve, European Central Bank, Bank of Japan, and Bank of England. Their guidance will be crucial in assessing the impact of the US-Iran conflict on the future interest rate outlook.

The US Federal Reserve is broadly expected to keep interest rates unchanged, though investors will closely monitor policymakers’ remarks for signals on the future rate path. 

Japan’s private sector growth also slowed in March, as activity in both manufacturing and services lost momentum. Rising costs linked to the Middle East conflict added pressure on businesses. The S&P Global flash Japan Manufacturing PMI fell to 51.4 in March from 53.0 in February.

Commodities

Brent crude oil prices climbed back above $100 a barrel after plunging on Monday, amid conflicting reports over potential talks between the US and Iran. On Tuesday, oil prices in Asia rose 4% to $103.94 (£77.57) a barrel.

Brent crude had dropped more than 10% on Monday after US President Donald Trump postponed threatened strikes on Iranian power plants, citing “productive” discussions with Tehran.

Gold and silver futures edged lower, declining 0.14% and 1.06%, respectively.

Source:

• https://www.nseindia.com/market-data/index-performances
• https://www.bseindia.com/sensex/code/16/