SENSEX JUMPS 400 PTS, NIFTY CROSSES 23,600: SUSTAINED FII BUYING AMONG KEY FACTORS BEHIND MARKET RALLY
Equity benchmark indices rebounded sharply on Thursday, with the Sensex climbing over 450 points and the Nifty reclaiming the 23,600 mark, driven by sustained foreign fund inflows and buying in heavyweights such as Hero MotoCorp, Larsen & Toubro and Reliance Industries.
Sensex surged 458.96 points or 0.59 percent to touch an intraday high of 77,747.46, recovering from early losses. The broader NSE Nifty advanced 139.9 points or 0.59 percent, to 23,626.75.
Among the major gainers were Hero MotoCorp, Larsen & Toubro, HDFC Life Insurance, Trent, Power Grid Corporation and Wipro.
Key factors driving the market rally:
1) FII Buying Support: Foreign Institutional Investors (FIIs) remained net buyers for the fifth consecutive session, purchasing equities worth Rs 2,240.55 crore on Wednesday. The steady inflow of foreign funds provided a significant boost to investor sentiment.
2) Value Buying in Blue-Chip Stocks: Investors took advantage of fair valuations following the recent market correction, leading to strong buying in index majors such as Hero MotoCorp, Larsen & Toubro and Reliance Industries.
3) Positive Global Cues: Global sentiment remained supportive, with Dow Jones Futures trading nearly 0.23 percent higher. In Asia, Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng Index also stayed in positive territory, aiding the domestic market's upward momentum.
4) Financials Lead Gains Despite Auto Weakness: Banking stocks outperformed, with the Bank Nifty rising nearly 1 percent as foreign inflows resumed. The financial sector offset losses in auto stocks.
Tata Motors fell 5 percent after US President Donald Trump announced a 25 percent tariff on imported cars, raising concerns over trade policies.
Technical View
Anand James, Chief Market Strategist at Geojit Investments, noted that the evening star candlestick pattern completed its formation, signaling a reversal. “We had identified 23,300 as the first support level, which remains crucial. A failure to breach this level or a sharp swing above 23,500 could indicate an early end to the reversal, though such a scenario appears unlikely for now,” he said.
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2025-03-27T05:50:16Z