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By Richard Fargose
March 24, 2025 at 12:26 PM IST
Key Highlights:
• IIFL Capital Services stock soars 13% amid top management rejig
• Titan shares fall 3% on concerns over slowing growth momentum, rich valuations
• M&M in talks to acquire entire promoter stake in SML Isuzu
• Kotak Mahindra Bank shares jump 4%, hit over 3-year high on key leadership changes
• Bank of America’s India Head Kaku Nakhate said to be leaving after 15 years
Benchmark indices, the Sensex and Nifty 50, rallied for the sixth consecutive session today, marking their longest winning streak since September 2024. The sustained upward momentum has now pushed the Nifty 50 into positive territory on a year-to-date basis, while the Sensex, though still marginally in the red, has exited correction territory.
Both indices are now down less than 10% from their all-time highs, a notable recovery from recent lows. Markets are considered to be in a correction phase when they decline 10% or more from peak levels.
Today’s rally was led by strong buying interest in heavyweight stocks, particularly in the banking and information technology sectors, which fuelled market optimism and risk-on sentiment.
| Indices | Last | Change | % Change |
| SENSEX | 77,984.38 | 1078.87 | 1.40% |
| NIFTY 50 | 23,658.35 | 307.95 | 1.32% |
| NIFTY MIDCAP 100 | 52,524.05 | 673.30 | 1.30% |
| NIFTY SMALLCAP 100 | 16,363.70 | 178.75 | 1.10% |
| INDIA VIX | 13.70 | 1.12 | 8.94% |
SECTORAL PERFORMANCE
All sectoral indices on the BSE ended the day in the green, highlighting the broad-based nature of the rally. Leading the charge were, banking, capital goods, IT, oil & gas, power, realty, and PSU banks, which rose 1–3%.
The BSE Midcap and Smallcap indices also posted solid gains, each adding over 1%.
| Top Gainers | % Change | Top Losers | % Change |
| NIFTY BANK | 2.20% | -- | -- |
| NIFTY FINANCIAL SERVICES | 1.99% | -- | -- |
| NIFTY REALTY | 1.53% | -- | -- |
| NIFTY OIL & GAS | 1.46% | -- | -- |
| NIFTY IT | 1.4% | -- | -- |
Yields on 10-year government bonds ended slightly higher as investors stayed on the sidelines before a large state bond auction and open market purchase of gilts on Tuesday.
Indian states are set to borrow ₹566.21 billion rupees through bonds auction on Tuesday, which is the highest notified amount in a weekly auction. The RBI will also buy bonds worth ₹500 billion on Tuesday.
The RBI has already infused over ₹5.50 trillion into the banking system so far through a combination of market bond purchases, FX swaps and longer duration repos.
| Tenure | Today | Previous |
| 10-year Gilt | 6.63% | 6.62% |
| 5-year gilt | 6.51% | 6.49% |
| 5-year OIS | 5.90% | 5.88% |
The Indian rupee extended its winning run to nine consecutive sessions, its longest stretch of gains since January 2024. The domestic currency benefited from renewed foreign inflows and a weakening US dollar, both of which have boosted investor confidence.
Key drivers of the rupee’s strength include--repatriation of corporate profits, which typically occurs in March, foreign inflows into Indian bonds, totalling nearly $3 billion so far this month, and a notable uptick in foreign institutional buying in Indian equities over recent sessions.
With a 2.1% gain in March, the Indian rupee has outperformed all major Asian currencies, reflecting strong macro fundamentals and renewed investor appetite for Indian assets.
| Unit | Today | Previous |
| Dollar/Rupee | 85.64 | 85.97 |
| Dollar Index | 103.63 | 103.74 |
| 1-year Dollar/rupee premium (%) | 2.20% | 2.21% |
OUTLOOK
Indian equity markets are expected to maintain their positive trajectory, supported by a stronger rupee, renewed foreign investor interest, and favourable global cues. The rupee’s recent appreciation—driven by robust capital inflows and a softer US dollar—has lifted sentiment among foreign institutional investors, who have returned as net buyers in both equities and debt.
However, the upcoming monthly derivatives expiry could introduce short-term volatility, with traders adjusting positions ahead of the rollover. Additionally, geopolitical uncertainties, including trade disputes and regional conflicts, remain potential disruptors to market stability.
The rupee is likely to stay supported on year-end dollar sales by exporters. The expected trading range for Tuesday is 85.00–85.80.
Key Events & Data Due Tuesday
Economic Data:
- US Conference Board March Consumer Confidence Index
- US February New Home Sales Data
Corporate Actions:
- SIS board to consider buyback
- Indian Renewable Energy Development Agency board to discuss fundraising plans
- Rudrabhishek Enterprises board to discuss fundraising plans
Policy:
- Bank of Japan Monetary Policy Meeting Minutes
- RBI to buy gilts worth ₹500 bln via OMO auction
- US FOMC Member Williams Speaks
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