Benchmark Indices Extend Gains Amid Strong Sectoral Rally
Indian stock markets continued their winning streak for the fourth consecutive session on March 20, with Sensex surging nearly 1,000 points and Nifty crossing the 23,200 mark. A broad-based rally across all sectors, particularly IT and auto stocks, contributed to the sharp upward movement.
At 2:45 PM, the Sensex climbed 975.82 points or 1.29% to 76,424.87, while the Nifty advanced 296.55 points or 1.29% to 23,204.15. Market breadth remained positive, with 2,227 shares advancing, 1,338 shares declining, and 105 remaining unchanged.
The midcap 100 and smallcap 100 indices rebounded after a brief dip into negative territory, posting gains of about 0.7% each. Despite the recent uptrend, analysts remain cautious, highlighting concerns over stretched valuations.
IT Stocks Lead the Rally Amid Optimism Over Federal Reserve Outlook
The Nifty IT index rebounded sharply, gaining momentum after plunging over 2% in the previous session. Heavyweights such as TCS, Infosys, and Tech Mahindra led the rally as global markets welcomed the Federal Reserve’s steady rate-cut outlook.
- Nifty IT index outperforms, bouncing back after a sharp fall in the previous session.
- TCS, Infosys, and Tech Mahindra emerge as key contributors to the rally.
- Global sentiment remains positive as investors assess Federal Reserve policy decisions.
Broader Market Sees Gains Across All Sectors
All 13 sectoral indices traded in positive territory, reflecting strong investor confidence across industries.
- Nifty Auto surged 1.47%, extending its strong performance from previous sessions.
- Nifty Realty, Oil & Gas, and FMCG rose between 1.2% and 1.4%.
- Pharma, Metal, Energy, and Banking stocks also recorded gains of over 1%.
Analysts note that domestic consumption themes are driving market momentum, while export-dependent sectors such as IT remain volatile.
Adani Enterprises’ New JV Impacts Cable Sector Stocks
Shares of Polycab India and Havells dropped by up to 8% in afternoon trading, following an announcement by Adani Enterprises regarding the incorporation of a new joint venture (JV) company, Praneetha Ecocables Ltd., through its subsidiary Kutch Copper Ltd.
- Kutch Copper will hold a 50% stake in Praneetha Ecocables Ltd.
- The JV will focus on manufacturing, marketing, and distribution of metal products, cables, and wires.
- Polycab India and Havells saw significant selling pressure due to potential competition concerns.
Defence Sector Shines as Garden Reach Shipbuilders Extends Rally
Shares of Garden Reach Shipbuilders & Engineers (GRSE) jumped over 7% to Rs 1,760, following a 20% surge in the previous session.
- The company signed a fresh Memorandum of Understanding (MoU) with PWD Nagaland.
- The agreement includes the supply of eight double-lane modular steel bridges to improve infrastructure in the state.
- Defence and shipping sectors continue to attract investor interest amid renewed demand.
Paytm Stock Plunges 6% as Jefferies Maintains ‘Hold’ Rating
Shares of One 97 Communications (Paytm) slumped 6% intraday after Jefferies retained its ‘hold’ call on the stock, citing several growth challenges.
- Jefferies set a price target of Rs 850 per share, indicating an 11.4% upside from the last close of Rs 763.
- Analysts raised concerns over potential roadblocks affecting Paytm’s expansion strategy.
- Paytm’s stock has declined nearly 30% since the start of 2024, reflecting investor caution.
Top Gainers and Losers on Nifty
The top gainers on Nifty included:
- Bharti Airtel
- Titan Company
- Bajaj Auto
- Eicher Motors
- Britannia Industries
Meanwhile, the major laggards on the index were:
- IndusInd Bank
- Bajaj Finance
- UltraTech Cement
- Trent
- Coal India
Analysts Cautious Despite Market Rally
While the market rally continues, analysts remain cautious about valuations and external factors that could influence future trends.
- Domestic consumption-driven stocks remain in focus.
- Sectors like defence and shipping are seeing fresh investor interest.
- Investors are awaiting key tariff announcements on April 2 that could impact market sentiment.
The overall sentiment remains positive, but analysts suggest a wait-and-watch approach as markets assess global and domestic economic indicators.
