Markets rise for 3rd day: Sensex up 250 pts, Nifty above 22,900 as PSU bank, metal stocks rally; IT, FMCG drag

Shriram Finance, Apollo Hospitals, Tata Steel, Adani Ports and IndusInd Bank were the top gainers on the Nifty.

Following a slow start, benchmark indices Nifty and Sensex surged for the third straight session, driven by a strong rally in metal and banking stocks, which lifted market sentiment. However, gains were tempered as the IT index slipped over 1 percent ahead of Fed's FOMC minutes scheduled for later today.

At 1 pm, the Sensex was up 252.87 points or 0.34 percent at 75,554.13, and the Nifty was up 100.15 points or 0.44 percent at 22,934.45. About 2,788 shares advanced, 758 shares declined, and 103 shares unchanged.

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The frontline indices staged a massive rally on March 18, posting its biggest single-day gain in two months. The Sensex surged as much as 1,200 points while the Nifty closed over 300 points higher at about 22,800. A sharp market rally on March 18 was driven by massive short covering by foreign investors, who turned net buyers of Indian equities after a month of heavy selling.

The broader market continued its winning streak, with the Nifty Midcap 100 and Nifty Smallcap 100 indices soaring 1.8 percent and 1.4 percent, respectively, outpacing the frontline indices. While small-cap stocks have reached reasonable valuations, they are not yet cheap, said Aishvarya Dadheech, Founder and CIO of Fident Asset Management, in a conversation with Moneycontrol. He expects large caps to see stronger inflows, followed by small caps, while mid-caps may still face some pressure in the near term.

Also read: Tariff war and US valuation worries dent foreign holdings of Indian funds by nearly Rs 2,900 crore in February

The positive domestic macroeconomic environment supports the market’s upward momentum, but its sustainability depends on continued foreign investor buying, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. However, he cautioned that external factors remain highly uncertain, with key events like April 2nd and reciprocal tariffs looming. This uncertainty could weigh on market sentiment in the coming days.

Markets now turn their focus to the Federal Reserve's March FOMC meeting on Tuesday and Wednesday, where investors widely expect rates to remain unchanged at 4.25–4.5 percent. Attention will also be on the updated economic projections set to be released on Wednesday.

Read more: Tata Steel, JSW Steel, SAIL shares surge after DGTR's 12% safeguard duty recommendation

Nifty Bank, PSU Bank, Auto, Metal, Oil & Gas, and Infra led the market higher, gaining between 0.8 and 1.7 percent, while the Pharma index edged up 0.3 percent.

On the flip side, Nifty IT and FMCG were the only laggards, with IT tumbling over 1 percent ahead of the FOMC minutes. Nine out of ten IT stocks declined, with LTIMindtree, TCS, Infosys, Coforge, and HCLTech falling nearly 2 percent, while Persistent Systems and Tech Mahindra lost over 1 percent. The weakness in IT stocks came as investors braced for the Federal Reserve’s policy decision, closely watching Fed Chair Jerome Powell’s speech amid soft economic data and uncertainty over potential tariffs from US President Donald Trump.

In today's session, steel stocks gained up to 4 percent after Directorate General of Trade Remedies (DGTR) recommended the imposition of a provisional safeguard duty on Flat Steel Products, CNBC-TV18 reported. The recommendation came after the authority observed that there has been a sudden spike in the imports of these products into India. This could have a serious impact on the domestic companies.

Shares of air conditioner and refrigerator-related companies, including Voltas and Havells India, rose up to 4 percent on March 19 after the government exempted key components from mandatory BIS certification, easing supply concerns ahead of an expected harsh summer.

IndusInd Bank's share price surged nearly 3 percent in trade on March 19 after IndusInd International Holdings (IIHL) completed the acquisition of Reliance Capital. IIHL Chairman Ashok Hinduja on Tuesday announced the acquisition of Reliance Capital, completing the three-year-long resolution process of the debt-ridden company.

"We anticipate Nifty to retest the psychological 23,000 mark, which aligns with the 50 DEMA and the dynamic trendline resistance formed by connecting major tops from all-time highs," Sameet Chavan of Angel One said.

"While this level appears within reach, this technical parameter has previously acted as a strong hurdle, and a breakout beyond it could drive an extended move towards the 200 DSMA at 23400 and beyond. On the downside, the previous resistance zone of 22,650–22,700 can now serve as immediate support. While the outlook remains positive, traders should remain cautious with the upcoming Fed policy announcement, which could trigger volatility," he added.

Shriram Finance, Apollo Hospitals, Tata Steel, Adani Ports and IndusInd Bank were the top gainers on the Nifty. TCS, Infosys, Tech Mahindra, HCL Tech and ITC were the major laggards.