Indian Stock Market Rises, Pharma & Auto Sectors Drive Growth

On Monday, March 17, Indian stock markets opened higher, continuing their positive momentum from the previous trading session.

At 9:32 AM, the Sensex was up by 504.88 points, or 0.68%, at 74,333.79, while the Nifty gained 164.00 points, or 0.73%, to trade at 22,561.20.

The early rise was led by strong buying in the pharma and auto sectors, signaling optimism among investors.

Technical Outlook

Market experts suggest that the Sensex faces resistance near the 74,550 zone, and while profit booking was seen during early trade, the index continues to show a positive outlook in the near term.

Vaishali Parekh, Vice President – Technical Research at PL Capital Group, emphasized that the index needs to sustain above the 73,600 level for further bullish momentum.

A decisive move past the 75,000 mark will likely pave the way for a sustained upward trend.

The pharma and auto sectors stood out in the early trade, with significant gains observed in stocks like IndusInd Bank, Tata Motors, and UltraTech Cement.

The Nifty Bank index rose by 259.95 points, or 0.54%, to reach 48,320.35, while the Nifty Midcap 100 index added 183.30 points, or 0.38%, reflecting a broad-based market rally.

Nifty Smallcap 100 also saw a modest rise, climbing 62.15 points or 0.42%.The near-term market sentiment remains positive, supported by favorable macroeconomic data.

Experts point to the bounce back in FY25 Q3 GDP growth to 6.2%, a surge in January IIP growth to 5%, and a decline in February CPI inflation to 3.61% as strong indicators of economic recovery.

Additionally, the steadily declining FII outflows and India’s outperformance compared to the US markets last week further bolstered market confidence.

Global Market Influence

Global market cues also played a role in the positive market sentiment.

The Dow Jones closed 1.65% higher, while the S&P 500 and Nasdaq gained 2.13% and 2.61%, respectively.

Asian markets showed mixed results, with Japan, Seoul, China, and Hong Kong in the green, while Bangkok and Jakarta faced losses.

On the institutional front, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 792.90 crore on March 13, while Domestic Institutional Investors (DIIs) took advantage of the dip, purchasing equities worth Rs 1,723.82 crore on the same day.

This suggests a shift in investor sentiment toward domestic equities.As the Indian stock market continues to show strength, the positive macroeconomic indicators and sectoral performance point toward a stable near-term trend.

Market participants will closely watch key support and resistance levels in the coming days to assess whether this momentum can be sustained.

The market remains bullish with the hope that pharma, auto, and other sectors will lead the rally moving forward.

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