After months of incessant selloff, the Indian stock markets have seen a strong comeback in the month of Marc.h Investors on the Bombay Stock Exchange (BSE) have gained Rs 35 lakh crore so far in March this year, with Sensex surging over 4,500 points to hover around 78,000. The Indian markets have now gained around 7.6 percent this month, after a strong fall following record highs in September.
Rupee strengthening against the US dollar after a long free fall was one of the major factors leading to the gains. Additionally, the gradual reduction of foreign selling and easing concerns over Trump tariffs further helped revive the market sentiment.
Broader markets:
Broader markets also saw a significant recovery, outperforming the benchmark indices. The Nifty Midcap index has so far surged nearly 10 percent to hover around 52,520. The Nifty Smallcap index, meanwhile, jumped nearly 12 percent.
How did the major sectors perform?
Nifty Metal index surged nearly 13 percent, to remain one of the top sectoral gainers in March so far. Nifty Realty and Nifty Pharma index meanwhile gained nearly 10 percent each during the period.
The Nifty Bank index rose nearly 7 percent in March so far. Nifty PSU Bank index strongly increased by nearly 12 percent, while the Nifty Private Bank index gained over 6.6 percent.
The Nifty Auto index jumped nearly 7 percent, while the Nifty FMCG rose over 5 percent. Bucking the trend, Nifty IT dropped nearly 0.3 percent during the period.
Kotak Mahindra Bank, Bajaj Finance, ICICI Bank, JSW Steel are among the heavyweight stocks to hit fresh 52-week highs in March.
Despite the strong uptrend, experts are urging investors to exercise caution. "Last week's rebound was driven by bargain hunting, and fueled by expectations of a turnaround in FPI, pushing the Sensex, Nifty, , Nifty midcap 100, and Nifty smallcap 100 to their strongest weekly gains in years. However, there are sound doubts over the rally’s durability given FPIs have still remained net sellers of equities, having offloaded Rs 15,000 crore in March. The current upswing could be a temporary bounce, the impact of reciprocal tariffs, set to take effect in early April remains uncertain. Charts point that markets could form a double bottom, wherein testing a low, recovering and again revisit the low before stabilising - a process that might take three months or longer," said Bajaj Broking.
"While the recent rebound may signal a shift in market momentum, global uncertainties—including geopolitical tensions and tariff-related disruptions—remain key risks. Going forward, the market’s direction will hinge on a sustained recovery in domestic consumption and resilient corporate earnings. Momentum may have returned, but fundamentals will chart the course," said Mahendra Patil, Founder and Managing Partner at MP Financial Advisory Services LLP.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.
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