Benchmark indices, the Sensex and Nifty 50, ended the market’s decline by staging a robust recovery from oversold territory, ending the March 5 session with gains of about 1%. In addition, the Nifty 50 is poised to end its 10-day losing streak, which is a first for the market.
Outpacing losses in a few index heavyweights, the uptrend was driven by information technology, metal, and auto companies. Nevertheless, given the persistent uncertainty surrounding trade disputes and the global financial markets, many continue to have doubts about the sustainability of this rebound.
The Nifty gained 254.65 points to close at 22,337.30, while the Sensex rose 740.30 points to conclude at 73,730.23. With 3,116 stocks rising, 734 falling, and 85 remaining unchanged, the market’s breadth continued to edge in favor of gainers.
In addition to the immediate effects on trade, these tariffs may increase US inflation, which could lead the Fed to maintain high interest rates for a long time. This could discourage foreign investment in developing nations like India.
Wider markets recovered well in the face of global unpredictability, with the Midcap and Smallcap indices rising more than 2% apiece. With Nifty Auto, Nifty IT, Nifty Energy, Nifty Metal, Nifty PSU Banks, and Nifty Realty leading the way with 2-4% increases, all 13 of the major sectoral indexes saw positive trading.
Adani Enterprises, M&M, Tata Steel, and Adani Ports led the charge among Nifty 50 companies, increasing 4-5 percent. The biggest laggards, however, were Bajaj Finance, HDFC Bank, and ICICI Bank, which fell 1-3 percent.
Following an announcement by the rival National Stock Exchange (NSE) that all futures and options (F&O) contracts will have their expiration dates changed, shares of BSE Ltd fell 3.5 percent. Beginning on April 4, weekly F&O contracts for the Nifty index will now expire on Mondays rather than Thursdays. The exchange also announced that all Nifty F&O contracts will henceforth expire on the final Monday of the expiry month instead of Thursday.
