Sensex Surges 550 Points from Day’s Low, Nifty Crosses 22,650 as Market Gains Momentum

Decline in Oil Prices, Slowing FII Selling Among Key Drivers of Market Rally

Mumbai, India – March 11, 2025: The Sensex and Nifty surged on Monday morning, recovering sharply from their early lows, as declining crude oil prices, easing foreign institutional investor (FII) selling, and positive cues from Asian markets boosted investor sentiment.

The Sensex climbed 585.25 points, or 0.78%, from the day’s low, reaching an intraday high of 74,741.25, while the Nifty gained 178.1 points, or 0.79%, to touch 22,676.75 during early trade.

Drivers of Monday’s Market Rally

1. Decline in Global Crude Oil Prices

• Brent crude prices fell by 0.51% to $70 per barrel, driven by concerns over U.S. economic growth, uncertainty surrounding U.S. tariffs, and the decision by OPEC+ to increase output.
• As India is a net importer of crude oil, lower prices reduce inflationary pressures and input costs, particularly benefiting sectors like automobiles, aviation, and oil-dependent industries.
• The drop in oil prices eased market concerns about rising costs, contributing to the bullish sentiment.

2. Foreign Institutional Investor (FII) Selling Slows Down

• FII selling, which had been a major pressure point for Indian equities, showed signs of abating.
• On Friday, FIIs offloaded equities worth ₹2,035.10 crore, but the pace of selling has slowed compared to earlier months.
• V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated:
  

  “FII selling continued into March, but the intensity has reduced in the past few days. As of March 7, FIIs had sold equities worth ₹24,753 crore, bringing total equity sales in CY 2025 to ₹1,37,354 crore.”

• The decline in FII outflows helped improve market sentiment, leading to a short-term rebound.

3. Delay in U.S. Tariff Implementation

• The temporary suspension of certain U.S. tariffs on Mexican and Canadian imports provided relief to global financial markets.
• President Donald Trump’s administration announced a one-month exemption on tariffs affecting USMCA trade partners, reducing fears of immediate trade disruptions.
• Devarsh Vakil, Head of Prime Research at HDFC Securities, noted:
  

  “Market volatility persisted amid uncertainty over President Trump’s proposed tariffs—25% on Canadian and Mexican imports and an additional 10% on Chinese imports. However, the administration later announced exemptions and delays, calming investor nerves.”

4. Mixed Global Market Trends

• Asian markets provided mixed cues:
  • Tokyo and Seoul traded in the green.
  • Shanghai and Hong Kong remained under pressure.
• China’s consumer price index (CPI) fell at the sharpest rate in 13 months in February, which, along with continued producer price deflation, could lead to policy interventions and increased liquidity in Asian markets.
• The expectation of stimulus measures from China could benefit emerging markets like India in the near term.

Stock Market Movers: Top Gainers and Losers

Top Gainers:

1. Power Grid
2. Bajaj Finance
3. Bajaj Finserv
4. NTPC
5. Hindustan Unilever
6. Adani Ports
7. Bharti Airtel
8. Nestlé India
9. HCL Technologies
10. Infosys

Top Losers:

1. IndusInd Bank
2. Mahindra & Mahindra
3. Zomato
4. Titan
5. Larsen & Toubro
6. Maruti Suzuki India