Markets Surge at Mid-day; Sensex Soars 1,700+ pts, Broad Based Rally

Mumbai, March 25: Indian equity markets witnessed a powerful broad-based rally at mid-day on Wednesday, with benchmark indices surging sharply higher as positive global cues and easing macro concerns drove strong buying across sectors.

Around 12:45 PM, the BSE Sensex was up 1,727.47 points or 2.33%, trading at 75,795.92, while the Nifty 50 gained 536.55 points or 2.34%, hovering at 23,448.95 — marking one of the sharpest intraday gains in recent weeks.

The rally was accompanied by a notable decline in India VIX, which fell 1.72% to 24.31, signalling easing investor anxiety and improving risk appetite across the market.

Sectoral Trends

The rally was emphatically broad-based, with all key sectoral indices trading firmly in the green. Nifty Consumer Durables led the charge with a stellar gain of 4.22%, followed by Nifty PSU Bank (+3.17%), Nifty Smallcap 50 (+3.19%), Nifty Chemicals (+3.03%), and Nifty Financial Services Ex-Bank (+3.01%).

Nifty Auto surged 2.64%, Nifty Metal climbed 2.54%, and Nifty Realty jumped 2.68%, continuing their recent momentum. Nifty FMCG rose 2.55%, while Nifty Pharma added 2.35% and Nifty Healthcare gained 2.26%. Nifty Private Bank advanced 2.43% and Nifty Financial Services 25/50 rose 2.74%.

Nifty IT was the relative laggard among sectoral indices, gaining a modest 1.00%, while Nifty Oil & Gas added just 0.99%, as oil-related stocks saw comparatively muted participation. Nifty Media rose 2.28%.

Broader Markets

Broader markets significantly outperformed the benchmarks. The Nifty Midcap 100 surged 2.59% to 55,490.15, while the Nifty Smallcap 100 jumped 2.98% to 15,957.65 and Nifty Smallcap 50 soared 3.19% to 7,841.00 — all comfortably ahead of the Nifty 50’s 2.34% gain.

The Nifty 500 rose 2.44% to 21,581.30, while the Nifty 200 gained 2.38% to 13,138.90 and Nifty 100 advanced 2.34% to 24,048.45. The Nifty Midsmallcap 400 climbed 2.69% to 18,424.90, and the Nifty Total Market index added 2.46% to 12,103.50. The Nifty Microcap 250 surged 2.98% to 20,136.50, underscoring the depth of the rally.

The broad participation across market-cap segments reflects strong renewed investor confidence, reversing the caution that had gripped markets in recent sessions.

Global Markets Supportive

Asian markets remained upbeat on Wednesday, providing a positive backdrop for Indian equities. Encouraging signals from the US Federal Reserve and hopes of a de-escalation in global trade tensions continued to lift sentiment across the region.

Overnight, Wall Street closed with solid gains as investors responded positively to economic data and reduced fears over a potential US recession. The S&P 500 and Nasdaq Composite both advanced, while Treasury yields remained stable, giving emerging markets including India a leg-up.

European markets also opened higher, with the FTSE 100, DAX, and CAC 40 posting gains in early trade, buoyed by positive global risk sentiment and easing concerns over energy supply.

Market Context

The sharp rebound comes on the back of sustained pressure that had weighed on Indian markets over recent weeks. A combination of sustained foreign institutional investor (FII) selling, high valuations in mid and smallcap segments, and global macro uncertainty had dented market confidence. However, with global cues turning constructive and domestic macro fundamentals remaining resilient, dip-buyers are clearly returning.

India VIX cooling to 24.31 from higher levels suggests that the fear premium in the market is moderating, which is typically a precursor to sustained recovery.

Source: 

• bseindia.com
• nseindia.com