The Indian stock market faced a volatile trading session on March 25, 2025, closing on a flat note after a series of early gains. The BSE Sensex managed to rise by 32.81 points or 0.04 percent, finishing at 78,017.19, while the NSE Nifty edged up by 10.30 points or 0.04 percent to close at 23,668.65. This follows a week of impressive gains, although profit booking across various sectors resulted in a restrained finish.
Market sentiment remained positive during the early session, with the Nifty index reaching a high of 23,751.10 shortly after the opening bell. Notably, IT and telecom sectors were the frontrunners, with stocks such as UltraTech Cement, Infosys, and others showing strong performance. UltraTech Cement rose 1.75 percent during the opening, trading at ₹11,244.45, making it one of the top gainers among index stocks.
However, by the end of the day, only a handful of sectors managed to stay above water while most suffered declines. The profit booking was prevalent across sectors including auto, capital goods, and metal, which led to declining indexes. Investers reacted to recent gains as cautiousness set in ahead of the upcoming F&O (Futures and Options) expiry.
According to Akshay Chinchalkar, Head of Research at Axis Securities, “Although overall breadth has been firmly positive, the advance has been vertical, with three upside gaps opening up since the March 17 low.” He further noted that this swift advancement makes bulls need to exercise caution.
Among the notable win for the day, several stocks in the technology and financial sectors maintained upward momentum while others faltered. Shares of HDFC Bank, Axis Bank, and Infosys led the banks as the major contributors to the upside. On the flip side, stocks in the Nifty bank category showed declines with IndusInd Bank falling 4.84 percent to trade at ₹637.05. The losses were compounded by accounting issues surrounding the bank.
An analyst stated, “Traders should maintain a ‘buy on dips’ strategy with a focus on selective stock-picking.” The Nifty’s immediate resistance is now expected around the 23,800 level.
In related news, Foreign Institutional Investors (FIIs) continued their buying spree, supporting the market's positive sentiment. They turned net buyers with purchases amounting to ₹3,055.76 crore, reinforcing the market's upward trajectory. Domestic Institutional Investors (DIIs) also turned net buyers, contributing ₹98.54 crore in equities on March 24, 2025.
The overall market breadth on March 25 showcased that out of 4,010 stocks traded across BSE, 1,109 advanced while 2,756 declined, reflecting the challenges faced by the majority of investors. The Nifty NEXT 50 index, which tracks larger companies, also faced a decline, finishing the day down 1.47 percent at 62,703.75.
Outside the major indices, some individual stocks captured attention. For instance, shares of BMW Industries Ltd surged nearly 10 percent after signing a Memorandum of Understanding (MoU) with the Ministry of Steel under the Production Linked Incentive (PLI) scheme for specialty steel. This development is expected to accelerate growth for the company.
Another significant event included the acquisition made by Madhusudan Murlidhar Kela, who bought 9.51 lakh shares or a 1.7 percent stake in SG Finserve at a price of ₹350.01 per share, reflecting his commitment to the investment.
The Sensex had its previous day soaring 1,078.87 points or 1.40 percent, which set an optimistic tone for the week. However, a swift retreat after considerable advances deemed it necessary for traders to adapt their strategies as they navigate through a mixed market dynamic.
With the completion of the F&O expiry looming, traders maintain a watchful stance on key support levels. Immediate support for the Nifty is pegged at around 23,400 while the top resistance remains at 23,800.
In summary, with mixed performances across sectors and profit booking setting in, investors remain cautious as they look forward to critical economic indicators and corporate earnings ahead.
