After a ten-day losing streak, the benchmark equity indices bounced back on Wednesday, March 5, driven by support from the IT and auto sectors. At 10:40 AM, the S&P BSE SENSEX was trading at 73,550.76, up by 560.83 points or 0.77%, while the NSE’s NIFTY50 index rose 185.45 points, or 0.84%, to reach 22,268.10. The broader market also contributed to the positive momentum, with 39 stocks on the NIFTY50 trading in the green, while only 11 were in the red. The top five gainers on the index included HCL Technologies, Mahindra & Mahindra, Tech Mahindra, Eicher Motors, and Trent, each gaining up to 2.69%.
The rebound came amid market reactions to the ongoing trade tensions. US President Donald Trump announced reciprocal tariffs, critiquing high tariffs charged by countries such as India, China, and the European Union. This sparked concerns of a trade war, with tariffs on imports from Mexico, Canada, and China taking effect, which further heightened market volatility. Trump’s remarks about the “unfair” nature of tariffs and his decision to initiate retaliatory measures added to the uncertainty, putting investors on edge. Despite this, Asian markets like Tokyo, Shanghai, Hong Kong, and Seoul were trading higher during the day, signaling some regional optimism.
On the domestic front, foreign institutional investors (FIIs) offloaded equities worth ₹3,405.82 crore on Tuesday, which contributed to the volatility. Meanwhile, Brent crude oil prices depreciated by 0.34%, settling at $70.80 per barrel. The market breadth was in favor of bulls, as 2,274 stocks on the NSE were in the green, while only 382 were in the red, reflecting overall positive sentiment. Additionally, 11 stocks reached their one-year highs in early trade, while 95 touched their 52-week lows.
In the broader market, the Nifty Midcap 100 index rose by 1.40% to 48,681.50 levels, and the Nifty Smallcap 100 index climbed 1.57% to 14,995.05 levels. Stocks like Jio Financial Services, Coforge, and SpiceJet were particularly active. Shares of Jio Financial Services jumped almost 4% after the company announced the acquisition of State Bank of India’s entire stake in Jio Payments Bank. Coforge saw a surge of 9.25% following several announcements, including the approval of a 1:5 stock subdivision. Meanwhile, SpiceJet shares rose over 5% after a bulk deal involving 90 lakh shares by Plutus Wealth Management.
Despite the global trade tensions and a volatile environment, the Indian equity market showed resilience, bolstered by sectoral support from IT, auto, and broader market movements.
