Stock Market Today: Sensex, Nifty end higher for fifth session, up 4.3% for the week; broader markets outperform

Indian stock markets closed higher for the fifth consecutive session on Friday, March 21, driven by foreign institutional investors (FIIs) returning to Indian equities amid attractive valuations and signs of an economic recovery. Broader markets outperformed benchmarks, while the Indian rupee extended its winning streak, further boosting investor sentiment.

The BSE Sensex climbed 557.45 points to close at 76,905.51, while the Nifty 50 gained 159.75 points, ending at 23,350.40. Both indices recorded a 4.3 percent weekly gain—their best weekly performance in over four years.

Broader markets also surged, with the Nifty Midcap index rising 1.4 percent and the Nifty Smallcap index adding 2 percent. Market breadth remained positive, with 2,684 stocks advancing, 1,179 declining, and 118 remaining unchanged, reflecting strong buying momentum.

"The domestic market has concluded the week with consistent recovery. The anticipated reduction in risk-free rates, coupled with the correction in the dollar index, are facilitating fund flows back to EMs. FIIs, whose selling activity has been waning, are becoming net buyers, driven by dovish signals from the U.S. Fed, which suggest the possibility of two rate cuts this year. This has reignited optimism in the domestic market. Despite global uncertainty from escalating trade tensions, improving domestic macroeconomic indicators, valuation corrections, and anticipated earnings growth are encouraging investors to seek bargains," said Vinod Nair, Head of Research, Geojit Financial Services.

Foreign institutional investors increased their buying activity, attracted by reasonable valuations of large-cap stocks following the recent market downturn. Additionally, the Indian rupee extended its winning streak for the eighth consecutive session, easing pressure on equity inflows and further supporting the bullish sentiment.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the market is witnessing a relief or pull-back rally that could potentially last up to the 23,300-23,500 levels, with large-cap stocks offering attractive entry points for investors.

Sectoral and Stock Performance:

Among sectors, Nifty Media emerged as the top gainer, rising 2.2 percent, followed by Nifty Oil & Gas, which added 2 percent. Meanwhile, Nifty Bank, Nifty Financial Services, and Nifty Pharma each advanced over 1 percent.

In the Nifty 50 index, SBI Life Insurance led the gainers, rising 3.4 percent, followed by NTPC, ONGC, Bajaj Finance, and BPCL. On the flip side, Trent, Mahindra & Mahindra, Wipro, Hindalco, and Infosys were the top laggards.

Bajaj Finance soared to an all-time high following the announcement of Managing Director Rajeev Jain's appointment to the board of Bajaj Finserv in an executive role. Jain will continue to oversee Bajaj Finance while also spearheading the group's expansion into new sectors, including healthcare, and supporting the transition within its insurance businesses. Bajaj Finserv, the promoter of Bajaj Finance, holds a 54 percent stake in the ₹3.25 lakh crore lending giant.

On the downside, information technology (IT) stocks faced selling pressure after Accenture issued lower-than-expected revenue guidance. As a bellwether for the Indian IT sector, Accenture’s earnings report is closely monitored by investors for insights into the industry's global outlook. Given the Indian IT sector's heavy reliance on service exports, Accenture’s cautious forecast weighed on domestic tech stocks.

Technical View

"The Nifty continues to move upward following a falling trendline breakout, supported by upbeat sentiment. During the last trading session, the index encountered resistance at the 21-week exponential moving average, which is placed at 23,382. A decisive move above 23,400 could drive the index higher by another 200 points, as the next resistance is at 23,600. A clear breakout above 23,600 might trigger another leg of the rally. On the other hand, failure to move above 23,400 could lead to near-term consolidation," said Rupak De, Senior Technical Analyst at LKP Securities.

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