After ten consecutive sessions of losses, the benchmark equity indices rebounded strongly on Wednesday, March 5, 2025, supported by gains in the IT and auto sectors. The broader market also provided support at the opening bell, driving investor confidence.
Market opens on a positive note
At 10:40 AM on March 5, 2025, the S&P BSE SENSEX was trading at 73,550.76, up by 560.83 points or 0.77%, while the NSE's NIFTY50 index was at 22,268.10, gaining 185.45 points or 0.84%. Investors looking to invest in stocks saw a strong buying interest across various sectors.
Of the NIFTY50 stocks, 39 were trading in the green, and 11 were in the red. Among the biggest gainers on the index were HCL Technologies Limited, Mahindra and Mahindra Limited, Tech Mahindra Limited, Eicher Motors Limited, and Trent Limited, with gains of up to 2.69%.
The broader market also extended its gains during morning trade, encouraging more participants to invest in stocks and take advantage of the market rebound.
NSE revises derivatives expiry
In a significant development, the National Stock Exchange (NSE) announced a revision in the expiry day for all index and stock derivatives contracts. Effective April 4, 2025, the expiry will be shifted from Thursday to Monday. This change is expected to impact trading strategies, prompting both institutional as well as retail investors to reassess their positions before they invest in stocks.
Global market trends and tariff concerns
Asian markets also traded higher, with indices in Tokyo, Shanghai, Hong Kong, and Seoul witnessing gains. Global cues remained positive despite recent concerns over trade tariffs.
On Tuesday night, US President Donald Trump criticised high tariffs imposed by India, China, and several other countries, calling them "very unfair." He announced that the US would introduce reciprocal tariffs starting next month.
"Other countries have used tariffs against us for decades, and now it's our turn. The European Union, China, Brazil, India, Mexico, and Canada have charged us significantly higher tariffs than we charge them. It's very unfair," Trump said during his address to the Joint Session of Congress.
The S&P 500 erased its post-election gains on Tuesday as markets reacted to the new tariffs on Canada, Mexico, and China. In response, Canada announced immediate counter-tariffs on US imports, while China imposed a 15% duty on US agricultural products, including chicken and pork, effective from March 10, 2025. These developments have led investors to tread cautiously before they invest in stocks amid global uncertainties.
Market statistics and volatility
As of early trade, a total of 2,712 stocks were actively traded on the NSE, with 2,274 in the green, 382 in the red, and 56 unchanged. This indicated a strong bullish sentiment, encouraging more traders to invest in stocks.
Additionally, 11 stocks hit their one-year highs in early trade, while 95 stocks touched their 52-week lows. Meanwhile, 140 stocks hit their lower circuits, whereas 49 stocks reached their upper circuits.
India VIX, the volatility gauge, was trading 1.06% lower at 13.68, indicating a decline in market volatility and providing a more stable environment for those planning to invest in stocks.
IT and auto sectors lead the gains
The IT and auto sectors remained the driving forces behind the market rally. Stocks from these sectors witnessed significant gains, attracting investors looking to invest in stocks with a higher growth potential. HCL Technologies Limited and Tech Mahindra Limited led the IT sector, while Mahindra and Mahindra Limited and Eicher Motors Limited provided strong support in the auto space.
With a positive outlook and increased buying interest, investors remain optimistic about market performance. Many are closely monitoring global developments before making further decisions to invest in stocks.
Summing up
The Indian stock market staged a strong recovery after ten sessions of decline, with the IT and auto sectors leading the rally. Broader market support and bullish investor sentiment contributed to the gains. Global market cues remained mixed, with concerns over tariffs impacting global equities. Investors remain watchful of future economic policies and global developments before making further investment decisions.
As of 1:00 PM, March 5, 2025, NIFTY50 was trading at 22,386.15, up 1.37%, and SENSEX was trading at 73,859.62, up 1.19%.
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