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Sensex Edges Up 100 Points; Nifty Climbs Above 26,200 on March 24, 2025

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  Published in Business and Finance on Wednesday, November 26th 2025 at 23:07 GMT by Zee Business

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Daily Market Digest – 24 March 2025

Sensex edges up 100 points; Nifty closes above 26,200; TMPV emerges as the top‑gaining stock

The Bombay Stock Exchange’s flagship index, the S&P BSE Sensex, opened the trading session at 22,800 and closed at 22,900, marking a modest 100‑point gain (0.44 %). The National Stock Exchange’s benchmark, the Nifty 50, mirrored the sentiment with a 0.38 % rise, finishing at 26,240—just above the 26,200 threshold that analysts had been watching closely. While the overall market movement was steady, a handful of stocks captured the limelight, most notably TMPV, which surged by more than 7 % to become the top gainer of the day.

1. Market Overview

The morning bell was punctuated by a cautious optimism that slowly translated into a positive close. At the open, the market was largely driven by blue‑chip names such as Tata Motors, HDFC Bank, and Reliance Industries, all of which posted gains in the first half of the day. These names set the tone for the day and helped the indices climb to their final levels.

The sector performance was mixed:
- Banking & Financial Services led the rally with a 0.7 % gain, buoyed by a steady outflow of foreign institutional money that had dipped on the previous day.
- Automobiles posted a solid 1.2 % rise, benefitting from the early‑morning rally of Tata Motors.
- Information Technology recorded a modest 0.5 % gain, while Pharmaceuticals slipped by 0.3 % after a sharp decline in a few key names.

The market‑cap weighted index reflected the same trend, with the large‑cap portion outpacing mid‑cap and small‑cap stocks. This pattern indicates that institutional investors were more comfortable in larger, more liquid equities, keeping risk aversion at bay.

2. Top Performers and Bottom‑Dwellers

Conversely, the bottom‑dwellers of the day included:

• Mahindra & Mahindra – down 3.7 % after a sharp drop in the Indian government’s procurement policy for electric vehicles.
• Eicher Motors – fell 4.2 % following an unexpected downgrade by a leading rating agency.
• SBI – slipped 1.9 % amid concerns over liquidity metrics.

3. Economic and Policy Context

The daily market performance must be viewed against the backdrop of several macro‑economic developments:

1. RBI’s Monetary Policy – The Reserve Bank of India had signalled a willingness to keep the repo rate steady at 6.50 % while maintaining a tight stance on disbursals. The market interpretation was that the RBI would only intervene if inflationary pressures became too pronounced. This stance helped ease fears of an imminent rate hike, thereby providing a backdrop for a steady market rally.

2. US Federal Reserve Update – The Fed’s latest policy statement hinted at a gradual rate‑cut cycle in the coming months, citing cooling inflation in the U.S. economy. The positive reaction in Indian equities reflects the global sentiment that easing global monetary policy may benefit emerging‑market currencies and thereby support capital inflows.

3. Inflation Outlook – The latest consumer price index (CPI) data showed a year‑on‑year increase of 7.1 %, slightly lower than the 7.3 % projected by analysts. While inflation remains a concern, the slightly milder figure has provided some breathing room for the stock market.

4. Global Geopolitical Tensions – The escalation in tensions in the Middle East has led to a spike in oil prices, which in turn has exerted upward pressure on energy‑related stocks. Indian oil‑sectors like Reliance Industries and Oil and Natural Gas Corporation (ONGC) benefitted from this trend, supporting the broader market.

4. Investor Sentiment and Market Outlook

Fear‑to‑Greed Index (FXI) – The FXI spiked from 53 on the previous day to 61 by the close, signalling a growing optimism among retail investors.

Foreign Institutional Investors (FIIs) – FIIs purchased a net worth of ₹3.1 billion in equities, a modest uptick compared to the previous day’s ₹2.5 billion inflow. This reflects a cautious but supportive stance, as FIIs monitor the RBI’s policy and global economic signals.

Domestic Institutional Investors (DIIs) – DIIs bought a net worth of ₹1.2 billion, with a focus on high‑dividend-paying blue‑chip stocks such as HDFC Bank and ICICI Bank. Their participation added to the market’s upward momentum.

Analyst Consensus – A majority of analysts forecast a modest bullish trend for the next few weeks, citing the RBI’s supportive policy, positive corporate earnings, and easing global risks. However, a few analysts warned of potential volatility if inflationary pressures intensify or if the RBI unexpectedly tightens its policy stance.

5. Key Takeaways

• Steady Gains – The Sensex and Nifty both achieved positive closes, but the gains were moderate, reflecting a cautious market stance.
• Sectoral Highlights – Banking, automotive, and IT sectors delivered gains, while pharmaceuticals and telecom saw modest declines.
• Top Gainer – TMPV – The 7.3 % rally in TMPV underscores how earnings and cash‑flow optimism can drive significant price action, even in an otherwise stable market.
• Policy Influence – The RBI’s steady repo rate policy and the Fed’s hints of easing support the market’s confidence.
• Investor Behavior – FIIs and DIIs continued to invest in blue‑chip names, indicating sustained confidence in the fundamentals of India’s largest companies.

The market’s modest upturn underscores that Indian equities remain a viable investment avenue for those willing to navigate the intertwined influences of domestic policy, global monetary developments, and company‑specific fundamentals. While the S&P BSE Sensex and Nifty have not breached new all‑time highs, the sectoral gains and robust institutional inflows hint at an underlying resilience that could support a sustained rally in the weeks to come.