Synopsis
On March 5, the Indian stock market rebounded strongly with both Sensex and Nifty closing over 1% higher. This positive movement was influenced by US tariff relief hints, leading to increased investor confidence and significant gains in various sectors.Key Takeaways
- Sensex surged by 740.30 points.
- Nifty climbed 254.65 points, ending a 10-day losing streak.
- 46 of 50 Nifty stocks closed in the green.
- Strong buying observed in the auto, power, and tech sectors.
- Broader markets also showed significant gains.
Mumbai, March 5 (NationPress) The Indian stock market experienced a notable rebound on Wednesday, with both the Sensex and Nifty closing more than 1 percent higher. This surge was fueled by comments from US Commerce Secretary Howard Lutnick, who suggested potential relief from certain tariffs affecting Mexico and Canada.
This optimism raised speculation that other tariffs might also be reconsidered, which positively affected investor sentiment.
The 30-share Sensex soared 740.30 points, or 1.01 percent, to close at 73,730.23, after reaching a day’s peak of 73,933.80 during the session.
Similarly, the Nifty ended the day robustly at 22,337.30, climbing 254.65 points or 1.15 percent, effectively breaking its 10-day losing streak.
Throughout the trading day, the Nifty fluctuated between 22,394.90 and 22,067.80. Notably, it had previously dropped 877 points or 3.8 percent over the last ten trading sessions.
Analysts credited the day's upward movement to robust buying in sectors like automobiles, power, and technology stocks.
“From a technical standpoint, the Nifty has formed a bullish belt hold candlestick pattern on a daily chart, indicating strength,” remarked Hrishikesh Yedve from Asit C. Mehta Investment Intermediates Ltd.
He noted that as long as the index maintains support at 21,800, a short-term recovery towards 22,300-22,500 could be anticipated.
Investor sentiment remained positive, with 46 out of 50 stocks in the Nifty index closing higher.
The top performers included Adani Ports, Tata Steel, Adani Enterprises, Mahindra & Mahindra, and Power Grid Corporation, which saw gains of up to 5.15 percent.
Conversely, some stocks, including Bajaj Finance, Indian Bank, HDFC Bank, and Shriram Finance, closed lower, with declines of up to 3.37 percent.
Broader market indices mirrored this upward trend, with small-cap stocks leading the way. The Nifty Smallcap100 index rose 2.96 percent, while the Nifty Midcap100 index increased by 2.42 percent.
All sectoral indices on the NSE ended positively, showcasing a widespread recovery across industries, with Nifty Auto, BSE Power, and BSE Metal emerging as top performers.
Additionally, broader market indices, such as the BSE Midcap and BSE Smallcap, experienced gains exceeding 2 percent, bolstered by significant buying activity.
“Nifty demonstrated a strong rebound as the 21,800-22,000 level provided firm support. After two days of sideways trading, the index has gained momentum. Furthermore, the RSI is displaying a bullish crossover and has risen from the oversold territory. In the near term, the trend appears strong, with the possibility of reaching 22,700 and beyond. On the downside, support is positioned at 22,100/22,000,” stated Rupak De from LKP Securities.
-- IANS
pk/na
