Equities Rise for Third Straight Session as IT Rebounds Ahead of Fed Decision

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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India Shares rise

By Dehuti Jani

March 18, 2026 at 11:35 AM IST

Indian equity benchmarks rose for a third consecutive session on Wednesday, led by a rebound in information technology stocks and broader gains across Asian markets, as oil prices eased ahead of the US Federal Reserve's rate decision later in the day. The Nifty50 and BSE Sensex each rose 0.83%, settling at 23,777.80 and 76,704.13 respectively, with both indices closing near their day's highs. The three-session recovery has delivered gains of 2.7% and 2.9% respectively, offering a partial rebound from last week's sharp losses that confirmed a technical correction, though both indices remain roughly 5.6% lower for the month as investors navigate the crude oil surge sparked by the US-Israeli war on Iran.

Jio Financial Services, Eternal and Tech Mahindra were the top gainers in the Nifty 50, while market participants kept a close eye on the Fed's policy commentary for clues on how the US-Iran conflict and its energy-driven inflation shock could influence the future rate trajectory. The Fed is widely expected to hold rates steady in the 3.50%–3.75% range, with policymakers' commentary on the impact of the West Asia conflict on the inflation and growth outlook seen as the key market-moving event of the day.

Broader markets outperformed the benchmarks, with the Nifty MidCap 100 rising 1.94% and the Nifty SmallCap 100 gaining 1.70%, as risk appetite continued to return across market segments. Nifty IT was the top-performing sectoral index, with Nifty Media and Nifty Realty also outperforming, while Nifty Metal and Nifty FMCG were the session's laggards.

Top Movers of the Day

Eternal surged around 3.46% to ₹242.75, emerging as the top gainer on the Sensex, supported by strong buying interest amid a broader market rally.

Bharat Electronics moved higher 0.60% to ₹442, tracking strength in defence stocks and steady order book visibility.

Larsen & Toubro edged up around 2% to ₹3,602, supported by infrastructure and capital goods demand outlook.

Bharti Airtel saw gains of 1.53%, aided by stable telecom sector sentiment and defensive buying.

Maruti Suzuki traded higher by 1%, despite being in focus due to tax-related developments, reflecting resilience in auto demand.

HCL Technologies was in focus after becoming the launch partner for the AWS European Sovereign Cloud, a new independently managed cloud infrastructure located entirely within Europe, first launched in Brandenburg, Germany.

Mahindra & Mahindra extended its uptrend into a third consecutive session, rising 2.3% on the BSE in intraday trade, continuing to attract buying interest amid the broader auto sector recovery.

Mankind Pharma rose over 3% after acquiring exclusive rights to manufacture, market and distribute the Rivotril brand in India.

Jaiprakash Power Ventures jumped 11.8% to an intraday high of ₹15.64 on the BSE, while its parent Jaiprakash Associates moved in the opposite direction, falling 4.7% to a day's low of ₹2.41.

Power Finance Corporation climbed 4% to ₹434.85 on the BSE amid heavy volumes, with a combined 6.82 million shares changing hands on the NSE and BSE by mid-morning.

PVR Inox rose over 2.5% ahead of the release of Dhurandhar's sequel, with investors anticipating the film could become one of the country's biggest box-office grossers.

Urban Company surged 15.8% to an intraday high of ₹127.30 on the BSE after NSE bulk deal data showed SBI Mutual Fund acquiring an additional stake in the company.

Swan Defence and Heavy Industries hit the 5% lower circuit after its offer for sale opened for non-retail investors, triggering selling pressure on the counter.

Futures & Options
Nifty March 2026 futures closed at 23,774.40, a marginal discount of 3.40 points to the spot Nifty, which rose to settle at 23,777.80 in the cash market. The near-flat premium to spot suggested a broadly neutral positioning among traders, with neither strong bullish conviction nor significant hedging pressure evident in the derivatives segment. India VIX declined 5.39% to 18.72, its third consecutive session of decline and the first time the index has fallen below 19 in several weeks, pointing to a meaningful and sustained easing of near-term volatility expectations as geopolitical anxiety gradually receded. HDFC Bank, Infosys and Eternal were the most actively traded stock futures contracts in the F&O segment on the NSE.

Bonds
Indian government bond yields edged higher on Wednesday, with the benchmark 6.48% 2035 bond yield rising to 6.7330% from 6.7143% at Tuesday's close, as traders adopted a cautious stance ahead of the US Federal Reserve's monetary policy decision later in the day. The modest move higher came despite a stabilisation in oil prices, which had provided some relief to bond markets in recent sessions. With the Indian bond market set to remain closed on Thursday for a local holiday, traders were reluctant to take on fresh positions ahead of the extended break, particularly with the Fed's policy commentary on the inflation and rate outlook awaited as a key directional signal.

Forex
The Indian rupee fell to a fresh record low on Wednesday, closing at 92.63 per dollar and eclipsing its previous lifetime low of 92.4750 hit last week, as the raging West Asia conflict kept oil prices elevated and triggered capital outflows that amplified macroeconomic risks for Asia's third-largest economy. Frequent interventions by the RBI, including on Wednesday, have helped curb the pace of the rupee's decline, though the currency continues to face sustained structural headwinds from elevated energy import costs and deteriorating risk sentiment.

Crypto
Crypto markets traded cautiously on Wednesday as investors awaited the US Federal Reserve's policy decision and digested fresh regulatory signals. Bitcoin held largely steady, edging up 0.2% to $74,207.90 after briefly climbing close to $76,000 in the previous session before losing momentum, as traders turned cautious ahead of the Fed announcement. Ethereum edged up 0.5% to $2,328.45. US securities and commodities regulators issued joint guidance dividing crypto tokens into five categories to clarify how federal laws apply to each asset class, a development seen as a constructive step toward greater regulatory certainty for the digital asset industry.

US Stock Futures
US stock futures climbed on Wednesday, pointing to a continued rebound as markets cautiously regrouped after the Iran war shock while awaiting the Federal Reserve's latest policy decision. Dow Jones Industrial Average futures rose 0.5%, following a second consecutive winning session on Wall Street, while S&P 500 futures gained 0.5% and Nasdaq 100 futures advanced 0.7%, as improving sentiment and easing geopolitical anxiety provided support to equity markets ahead of the closely watched Fed announcement.

US Treasury Notes
Yields on US Treasury eased on Wednesday as markets shifted focus to the Federal Reserve's interest rate decision later in the day. The benchmark 10-year note yield declined approximately 3 basis points to around 4.18%, while the 2-year note traded near 3.66%, as stabilising risk sentiment and a modest retreat in crude oil prices from above $100 per barrel earlier in the week supported bond prices. The Fed is widely expected to hold the federal funds rate steady in the 3.50%–3.75% range, with traders closely watching Chair Jerome Powell's guidance for signals on how the recent energy-driven inflation shock could delay future rate cuts, many now pricing in no reduction until late 2026.

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