Nifty 50, Sensex end higher for third straight day as financials, realty lead gains; midcaps outperform | Stock Market News

Stock market today: Indian stocks extended their bull run to the third straight session on Wednesday, March 19, driven by gains in financials, heavyweight stocks, and value buying in beaten-down counters. Despite weak sentiment on Wall Street ahead of the Federal Reserve’s monetary policy decision, domestic markets remained resilient, driven by positive macroeconomic factors.

Barring IT and FMCG, all major sectoral indices finished the session in the green, with metals garnering significant interest, driven by the 12% safeguard duty recommended by the Directorate General of Trade Remedies (DGTR) on the import of certain steel products to curb imports.

Against this backdrop, the Nifty 50 ended the session with a gain of 0.32%, closing at a three-week high of 22,907 points, while the Sensex wrapped up the trade with a 0.22% gain, finishing at 75,468 points.

The broader market outperformed the benchmark indices for the second consecutive session, with the Nifty Midcap 100 index rising 2.63% to close at 50,817. Likewise, the Nifty Smallcap 100 index gained 2.43%, ending the session at 15,747 points.

PSU defence stocks gained strong momentum, with Garden Reach Shipbuilders, Mazagon Dock, and Bharat Dynamics rallying up to 20% amid renewed interest in the sector, driven by a potential India-US bilateral trade deal and Germany’s defence spending package.

Meanwhile, investors turned their focus to the US Federal Reserve, which is set to release its latest policy statement today. The central bank is widely expected to keep interest rates unchanged and provide an updated summary of economic projections (SEP).

Amid rising global trade tensions initiated by Donald Trump, investors believe that the Fed may adopt a more cautious stance than previously expected, given the potential jump in domestic prices as duties on major goods take effect.

Sectoral Performance: Realty leads gains; IT stocks resume losing streak

Among the 13 major sectoral indices, 11 ended in the green zone, with Nifty Realty emerging as the top sectoral gainer, soaring 2.80%, followed by Nifty PSU Bank, Nifty Consumer Durables, Nifty Metal, Nifty Media, and Nifty Oil & Gas, all closing with gains between 1% and 2%.

On the losing side, Nifty IT was the top sectoral laggard, dropping 1% and ending its two-day winning streak after global brokerage firm Citi, in its recent note, retained a cautious view on domestic technology companies amid concerns over the U.S. economy.

The brokerage also noted that despite the sharp drop in Nifty IT, which is now down 22% from its peak, the index is still trading at premium valuations. It pointed out that Nifty IT continues to trade at a 30% premium to the Nifty 50, even as sectoral growth remains lower than pre-COVID levels. While valuations may appear reasonable on a five-year basis, they are inflated by the high growth seen in 2021 and 2022, it said. 

Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market continued its positive momentum, as part of the recent correction was justified by valuation. The sustainability of the relief rally depends on a revival in fundamentals. The recovery was broad-based, while metal stocks gained attention after the government decided to impose a tax on steel imports.”

“In light of trade uncertainties and growth concerns, today’s FED policy and the commentary will be keenly watched by investors to get cues on interest rates,” he further added.

Technical Outlook

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates, said, ” Technically, Nifty found the support around 22,800 and formed a small green candle on daily scale, indicating strength. The recent breakout point of 22,800 will provide immediate support for the index, followed by 22,700. However, trend line resistance and the 50-day exponential moving average are located around 23,000 levels, which will serve as a short-term barrier. Considering the overall positive momentum, traders are advised to adopt a “buy on dips” strategy in the short term.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.