The Indian stock market indices, Sensex and Nifty 50, experienced a strong performance leading into the trading session on Friday, March 21, 2025, despite opening on a cautious note. The market sentiment has been buoyed by a series of positive developments contributing to the optimistic outlook among investors.
On March 20, 2025, the Sensex surged 899.01 points, or 1.19%, to close at 76,348.06, while the Nifty 50 settled 283.05 points, or 1.24% higher at 23,190.65. This remarkable upswing is notable as it follows a consistent rally over four consecutive sessions, highlighting robust investor confidence amidst a backdrop of fluctuating global market conditions.
As of 10 AM on Friday, the market displayed a bullish trend with the Sensex climbing by 204 points to 76,530, while the Nifty 50 saw an impressive increase of 563 points, crossing 23,253. This momentum reflects not only a rebound from a muted opening phase but also indicates the underlying strength of the market.
GIFT Nifty, an early indicator for the Nifty 50 index, had indicated a somewhat mixed start, trading around 23,217, a premium of nearly 17 points over the previous close. However, such pre-market activity signaled a positive start ahead.
The uptick in the market is further underscored by inflows from foreign portfolio investors (FPIs), who purchased shares worth Rs 3,239.14 crore on March 20, while domestic institutional investors (DIIs) turned net sellers of Rs 3,136.02 crore. This disparity in buying and selling points towards a continued strategical interest from foreign players in contrast to local investors' caution.
Market analysts, such as Shrikant Chouhan from Kotak Securities, have pointed to the recent bullish trends as indicative of a strong technical performance, noting that, “Technically, Sensex successfully cleared the 50-day SMA (Simple Moving Average) level and the 75,700 resistance zone, which is largely positive.” Chouhan further shared insights about key support zones, projecting 76,000 and 75,700 as critical levels, while resistance could surface between 76,500 and 76,800.
A closer examination of the sectoral indices revealed that all major segments recorded gains. Notably, sectors such as energy, automobiles, and fast-moving consumer goods led the charge. However, the Nifty IT sector faced heat, showing declines by approximately 2.21%. Chouhan's analysis points towards broader bullish market sentiment, suggesting that “Overall market sentiment is bullish, but buying on dips and selling on rallies would be the ideal strategy for day traders.”
On the global front, Asian markets exhibited a mixed performance. Japan’s Nikkei index rose by 180.81 points, or 0.48%, while other major indices showed more caution and red indicators, influenced by external geopolitical issues as well as presidential trade concerns in the U.S. Such inconsistencies in the Asian markets reflect a complex scenario for traders as volatility remains a key characteristic of the current trading climate.
U.S. markets concluded on a lower note the previous day, with the Dow Jones down 11 points, or 0.1%, the S&P 500 slipping 0.2%, and the Nasdaq dropping 0.3%. Analysts attributed this downturn to cautious investor sentiments stirred by potential interest rate hikes and tariff threats stemming from the Trump administration, particularly with broad reciprocal tariffs forecasted to take effect on April 2, 2025.
Further considerations impacting market sentiment include the latest U.S. labor market data. Recently released figures indicate that first-time unemployment claims slightly increased to 223,000 for the week ending March 15, 2025, signaling economic uncertainty ahead and influencing trading strategies.
The current scenario indicates an ongoing dynamic in the financial ecosystem as participants navigate a fluctuating landscape characterized by global uncertainty and economic adjustments. Key market players are poised to focus on technical benchmarks and respond to further news regarding trade policy, inflation, monetary policy, and global economic conditions.
For now, as the trading session unfolds, investors remain watchful of how global cues will further shape domestic sentiment and affect the ongoing rally that has gripped the markets in recent days.
