Indices extend early gains as IT, auto, metal names lead charge; all sectors glimmer in green

The Nifty has rebounded from its crucial support zone of 22,000.

Indian benchmarks--the Nifty 50 and Sensex sustained gains and extended its upmove by mid-day on March 5, aided by strong buying across information technology, automobile and metal names. While some heavyweights like HDFC Bank, ICICI Bank and Bajaj twins did suffer loses, gains in other frontline stock outweighed its impact.

Around noon, the Sensex surged 803.44 points or 1.10 percent to 73,793.37, while the Nifty climbed 271.55 points or 1.23 percent to 22,354.20. Market breadth remained strong, with 2,936 shares advancing, 539 declining, and 89 remaining unchanged.

The recovery in the market was much-awaited by analysts, especially after the rout seen in February pushed the headline indices into oversold territory. However, Kranthi Bathini, director at WealthMills Securities has cautioned investors against seeing this rebound as a bottoming out of the market as he believes the sentiment is unlikely to change as long as the Nifty trades below 23,000.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, seconded the sentiment, stating that while the market rebounded from lower levels, the recovery lacked strength and could have dampened sentiment without support from global markets.

From a structural standpoint, he highlighted that the Nifty was hovering near key support zone at 22,000 points and 21,800 points. "A sharp recovery from the 21,800-levels could trigger a strong reversal of the recent sell-off from the highs of 23,800 points. However, a close below 21,800 points would be negative, increasing the likelihood of a further decline toward 21,500 points," Chouhan believes. On the upside, he expects resistance at 22,200 points, followed by 22,500 points.

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Recently though, global markets have been roiled by sweeping tariffs imposed by US President Donald Trump, invoking not just retaliatory measures but also fears of a multi-front global trade war.

The US officially imposed a 25 percent tariff on imports from Canada and Mexico on Tuesday, while Chinese goods now face a total duty of 20 percent after an additional 10 percent levy. In response, China and Canada have announced reciprocal tariffs on US imports.

Escalating tensions, Trump has also threatened to impose retaliatory tariffs from April 2, also putting the spotlight on India, heightening fears of trade disruptions and market volatility. Beyond immediate trade impacts, these tariffs could push US inflation higher, potentially prompting the Federal Reserve to keep interest rates elevated for an extended period—a move that may curb foreign investment in emerging markets like India.

Meanwhile, the broader markets staged a much stronger recovery, with the BSE Midcap and BSE Smallcap indices gaining over 2 percent each.

Among sectors, all 13 major indices traded with gains, with Nifty Auto, Nifty IT, Nifty Energy, Nifty Metal, Nifty PSU Banks and Nifty Realty, leading from the front with their 2-3 percent upmove.

Among Nifty 50 constituents, frontrunners included Trent, Adani Enterprises, M&M and Power Grid, surging 4-6 percent. Meanwhile, Bajaj Finance, HDFC Bank and ICICI Bank emerged as the top losers, falling 1-2 percent.

Shares of BSE tumbled 9 percent after rival National Stock Exchange (NSE) announced a shift in the expiry day for all futures and options (F&O) contracts. Starting April 4, Nifty index weekly F&O contracts will expire on Mondays instead of Thursdays. Additionally, all Nifty F&O contracts will now expire on the last Monday of the expiry month, rather than Thursday, the exchange stated.

Shares of Granules India fell 3 percent after the US Food and Drug Administration (FDA) issued a warning letter highlighting serious lapses at the company’s Gagillapur unit. The concerns raised have sparked fears of a potential import ban if the issues, deemed critical, are not resolved within the stipulated timeframe. With the Gagillapur facility contributing 70 percent of Granules India’s revenue, any adverse regulatory action could significantly impact the company’s earnings growth.

Shares of IT firm Coforge skyrocketed over 10 percent after the company announced two acquisitions, a major long-term deal, and a stock split. Coforge secured a 13-year, $1.56 billion agreement with US-based travel technology firm Sabre Technologies to enhance product delivery and develop AI-driven solutions. The company stated that this partnership reinforces its role in accelerating Sabre’s innovation, emphasising speed and scalability in AI-powered product development.