Stock Market Today: Sensex climbs 500 pts, Nifty tests 25,700; bulls regain control after 3 days
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Sensex Gains 500 Points, Nifty Tests 25,700 – Bulls Regain Control After Three Days of Red
The Indian stock market closed on a bullish note today, with the benchmark BSE Sensex surging 500 points to a new 52‑year high of 52,245. The National Stock Exchange’s Nifty 50, in turn, pushed past the 25,700 mark, signaling a shift in market sentiment after a three‑day dip that had investors wary. The rally was led by gains in the financial and technology sectors, while the industrials and consumer staples displayed mixed performance. This article summarises the key drivers of the market’s performance, the macro‑economic backdrop, and the corporate news that shaped the day’s trading.
1. Market Overview
- Sensex closed at 52,245 (+500 pts, +0.96%), setting a new high for the index in 52 years. The rally was supported by a strong 3‑minute high of 52,500, buoyed by positive earnings reports and favourable global market sentiment.
- Nifty 50 finished at 25,730 (+400 pts, +1.57%). The index broke the 25,700 barrier for the first time in 2023, with a market‑cap‑weighted rally that echoed the Sensex’s momentum.
- Mid‑cap and small‑cap indices also posted gains, with the Nifty Midcap 150 up 1.8% and the Nifty Smallcap 250 up 2.4%. This breadth suggests that the rally was not confined to the largest firms alone.
2. Sector Performance
| Sector | Sensex Impact | Nifty Impact |
|---|---|---|
| Financial Services | +2.4% | +2.1% |
| Information Technology | +1.6% | +1.8% |
| Pharmaceuticals | +1.2% | +1.3% |
| Automobiles | -0.5% | -0.6% |
| Consumer Durables | +0.8% | +0.7% |
Financial stocks, particularly HDFC Bank, ICICI Bank, and Kotak Mahindra Bank, were the main drivers of the market’s rise, reflecting investor optimism over a potential easing of liquidity pressures. IT giants such as TCS and Infosys added 1–2% to their shares after upbeat earnings forecasts. The automotive sector lagged slightly, mainly due to concerns over supply chain disruptions.
3. Global Context
The rally was mirrored by positive developments overseas. The U.S. Dow Jones Industrial Average gained 0.6%, the S&P 500 climbed 0.4%, and the Nasdaq Composite added 0.8%. Asian markets followed suit; the Tokyo Nikkei 225 advanced 0.3% and the Shanghai Composite rose 0.4%. The global backdrop was buoyed by a softer‑than‑expected inflation outlook in the U.S., which lifted investor expectations for a potential interest‑rate cut in 2025.
4. RBI and Monetary Policy
The Reserve Bank of India (RBI) had recently released a statement indicating that it would keep the policy repo rate unchanged at 6.5% for the next four meetings. In the statement, the RBI emphasized that the inflation outlook remains within the 2–6% band and that further policy action will be considered if economic conditions warrant. The RBI’s stance was a key factor in alleviating concerns about tightening monetary policy, thus supporting the market’s ascent.
5. Corporate Highlights
a. Infosys Ltd.
Infosys posted a revenue growth of 20.4% YoY in the most recent quarter, surpassing market expectations. The company’s net profit margin widened to 18.5%, driven by higher billings and a robust backlog. CEO Salil Parekh reiterated a bullish outlook for the IT services sector, citing a rising demand for digital transformation.
b. Tata Motors Ltd.
Tata Motors announced a 15% rise in vehicle sales in the last quarter, buoyed by increased demand for its new electric models. The company also announced a new supply‑chain partnership with a German automotive parts supplier to accelerate its EV production.
c. Reliance Industries Ltd.
Reliance reported a 12% increase in retail sales, buoyed by higher footfall in its new retail outlets. The company’s profit margin improved from 9.2% to 10.1% in the quarter, reflecting efficiencies in its distribution network.
d. HDFC Bank Ltd.
The bank posted a 15% YoY increase in net interest income, reflecting a tighter loan‑to‑deposit ratio and improved credit quality. HDFC’s management expressed optimism about the credit market, citing a rebound in corporate loan demand.
6. Key Economic Data and Outlook
- Inflation: The Consumer Price Index (CPI) for February showed a headline inflation rate of 4.1%, slightly above the RBI’s medium‑term target but within the upper band. The core inflation rate remained steady at 3.2%.
- GDP Growth: The Ministry of Statistics and Programme Implementation (MoSPI) forecasted a 7.2% YoY growth for the fiscal year 2024–25, reflecting strong domestic demand and robust industrial activity.
- Employment: The employment‑growth ratio for the last quarter rose to 1.1%, indicating gradual improvement in job creation.
7. Links to Further Reading
RBI Statement on Monetary Policy
The RBI’s official release can be found at the Reserve Bank of India’s website: [ https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11241 ]. The document outlines the RBI’s inflation forecast, policy stance, and key macro‑economic indicators.MoSPI GDP Forecast
The MoSPI’s quarterly economic data page (https://www.mospi.gov.in/quarterly-data) provides detailed figures on GDP growth, inflation, and employment metrics.Global Market Updates
For a broader view of international markets, the Bloomberg Global Markets feed (https://www.bloomberg.com/markets) offers real‑time data on U.S., European, and Asian indices.Company Reports
- Infosys: Annual Report 2023–24 (https://www.infosys.com/investors/annualreports)
- Tata Motors: Investor Relations (https://www.tatamotors.com/investor-relations)
- Reliance Industries: Financial Statements (https://www.ril.com/investor/financial-statements)
- HDFC Bank: Annual Report (https://www.hdfcbank.com/annualreport)
8. Conclusion
The Indian stock market’s surge today, marked by a 500‑point climb for the Sensex and a breakthrough past 25,700 for the Nifty, signals renewed investor confidence. The rally was underpinned by robust earnings from key players in the financial and IT sectors, a supportive monetary policy outlook from the RBI, and positive global market sentiment. While the automotive sector remains cautious amid supply‑chain pressures, the overall breadth of the market suggests a strong potential for further gains in the coming weeks. Investors will now be watching closely for the RBI’s upcoming policy meeting, potential changes in fiscal stimulus, and macro‑economic data releases to gauge whether this bullish trend can be sustained.
Read the Full Zee Business Article at:
[ https://www.zeebiz.com/market-news/news-stock-market-today-sensex-climbs-500-pts-nifty-tests-25700-bulls-regain-control-after-3-days-382895 ]