Indian equity markets opened flat on Thursday, driven by strong buying from domestic investors, who took advantage of oversold levels, pushing stocks higher despite global uncertainties. After a prolonged period of weakness, the market managed to end the day on a positive note, signaling a potential recovery after weeks of downward pressure.
The BSE Sensex gained 34.39 points, closing at 73,764.62, while the Nifty rose by 26.75 points to settle at 22,364.05. While the gains were modest, the market’s performance was seen as a sign of resilience after a dramatic decline earlier in the week. Among the 50 Nifty stocks, 28 advanced while 22 declined, highlighting the broader market recovery.
Sectoral and Stock Performance
In terms of sectoral performance, the key gainers on the Nifty were stocks like BPCL, Asian Paints, Shriram Finance, Reliance Industries, and Tata Steel. BPCL’s performance was especially strong, reflecting the oil sector’s resilience amid rising global crude prices. Asian Paints, known for its strong earnings track record, also saw investor interest, while Shriram Finance benefited from positive sentiment in the financial services sector.
On the flip side, SBI Life, Britannia, Infosys, Bharti Airtel, and Trent were among the top losers. These stocks faced selling pressure, with some of the declines driven by profit-taking and concerns over potential volatility in global markets.
Rebound after Historic Downturn
The market’s recent rally follows a period of intense selling pressure, including a 10-day losing streak for the Nifty, marking its worst-ever consecutive decline. However, on Tuesday, the Nifty managed to break its losing streak, surging by 1.2 percent. This marked a critical turning point for the index, as investors became more confident following a sharp sell-off.
Akshay Chinchalkar, Head of Research at Axis Securities, commented on the recent market movement: “The Nifty’s recovery from the lower end of a key support zone is encouraging. Moreover, the fact that the broader market, including midcaps and smallcaps, has been outperforming the Nifty over the last few sessions, signals that sentiment could be improving.”
Chinchalkar noted that the Nifty’s support level had shifted higher to the 22,100 – 22,187 range, with the index now aiming to break through resistance levels between 22,410 and 22,720. A daily close above 22,508 could serve as a bullish indicator for the market’s next leg higher.
Global Risks and Domestic Dynamics
Despite the positive movement in Indian markets, experts remain cautious about global headwinds that could pose risks to the current rally. Ajay Bagga, a noted banking and market expert, pointed to geopolitical uncertainties and the global risk-off sentiment. “The sustainability of this recovery will depend on how global markets react, especially with the unpredictability surrounding U.S. policies under President Trump. The ongoing tariff negotiations between India and the U.S. are crucial, with a deadline set for April 2,” Bagga remarked.
Additionally, while foreign portfolio investors (FPIs) continue to pull back from Indian equities, domestic institutional buying has so far managed to absorb the outflows. This divergence between domestic and foreign investors is adding to the complexity of market dynamics, with domestic buyers continuing to support the broader market in the face of foreign selling.
Outlook for the Market
As the Indian equity market continues to seek direction, investors are likely to keep a close eye on global developments, including trade negotiations, geopolitical risks, and central bank policies. The market is also expected to be influenced by domestic economic data, corporate earnings, and potential policy changes that could impact investor sentiment.
In the coming sessions, analysts will be looking for signs of further stabilization, especially in the face of global uncertainty. While the recent recovery is promising, the market’s ability to sustain the rally will depend on both domestic and global factors aligning in favor of equity bulls. For now, Indian investors remain cautiously optimistic, with the recent bounce offering a glimmer of hope for a sustained recovery.
