Indian stock markets surged today, March 18, 2025, with BSE Sensex rising over 800 points to trade at 74,973.68, and Nifty50 climbing above the 22,700 mark, indicating strong investor sentiment and recovery from previous downturns. At 10:14 AM, BSE Sensex was up by 804 points or 1.08%, and Nifty50 showed gains of 235 points or 1.04%.
The market's upward movement follows advancements seen on March 17, when both indices had shown positive performance. This gain is attributed to favorable global market cues, including the recovery of U.S. markets after four weeks of decline. Stocks such as IndusInd Bank and ICICI Bank were among the leading gainers during today's trade.
Investors are closely monitoring upcoming interest rate decisions from the U.S. Federal Reserve, Bank of Japan, and the Bank of England this week. The U.S. Federal Reserve's decision, expected on March 19, is particularly important, as analysts anticipate the Fed will maintain current interest rates amid concerns about potential inflation due to tariff policies. According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, "Broad indications are... the market has bottomed out even though corrections cannot be completely ruled out. "
Dr. Vijayakumar mentioned several positive domestic indicators: the FY25 Q3 GDP growth of 6.2%, spurt in the Index of Industrial Production by 5.1%, and increased gross tax collection by 16%. He also noted improvements like declining trade deficits and CPI inflation dropping to 3.6%. These trends are encouraging but may be insufficient to sustain long-term growth due to global economic challenges, especially arising from tariff wars.
Market watchers also noted Foreign Portfolio Investors (FPIs) registered net sales of Rs 4,488 crore on March 17, but Domestic Institutional Investors (DIIs) purchased shares worth Rs 6,001 crore, demonstrating conflicting market dynamics. Interestingly, foreign institutional investors (FIIs) reduced their net short position from Rs 1.84 lakh crore to Rs 1.71 lakh crore during the same period.
Today's trading session began with optimistic sentiments; the BSE Sensex opened at 74,169.95, gaining 438.71 points or 0.59% from the previous close of 74,169.95. Nifty50 also opened higher at 22,662.25 with gains of 153.5 points or 0.68%. Despite these positive indicators, only two stocks—Sun Pharma and Nestle India—were reported to be underperforming during the opening trade.
Global influences are not to be overlooked; Asian markets traded positively, buoyed by the performance of U.S. indices. On March 17, the S&P 500 rose by 0.6%, and the Dow Jones gained 353 points, or 0.9%. The Nasdaq composite witnessed a modest uptick as well, indicating improved investor confidence. Specifically, Hong Kong's Hang Seng index was up by 454.65 points or 1.88%, and Japan's Nikkei 225 gained 529.41 points or 1.42%.
Another notable mention is the performance of gold, which remained steady near the $3,000 mark, following last week’s record peak. Market players are eagerly awaiting the Federal Reserve's policy announcement, which could greatly influence gold prices and the broader economic outlook.
Dr. Vijayakumar added, "Hopes of growth revival in China coupled with the cheap valuations of Chinese stocks have triggered foreign capital inflows. This situation has led to FII selling within India, where the valuations are relatively expensive."
The trading climate indicates possible volatility; experts are cautioning against expecting sharp market movements, with predictions of the stock indices moving within certain ranges without significant breakthroughs.
The investment community remains vigilant over domestic and international economic indicators as they evaluate their strategies. The proactive market responses to recent news suggest optimism, but participants are also aware of potential challenges lying ahead.
Investors are advised to keep track of macroeconomic data releases and global financial developments, ensuring they are well-positioned for any market fluctuations stemming from these factors. A comprehensive watch on upcoming Federal Reserve announcements will play a key role in shaping market sentiments as the week progresses.
