Sensex and Nifty Surge: Stock Market Rebounds Strongly

The Indian stock market witnessed a significant turnaround on March 5, 2025, as both Sensex and Nifty staged a strong comeback after a prolonged 10-day losing streak. The BSE Sensex surged over 900 points, closing above 73,700, while the NSE Nifty 50 reclaimed the 22,350 mark. The broad-based rally was fueled by gains in IT, metals, auto, and banking stocks, along with positive global cues and hopes of a rollback on U.S. tariffs under Trump’s administration.

📊 Market Highlights: A Day of Bullish Recovery

• Sensex: 🔼 +900 points, closing at 73,730
• Nifty 50: 🔼 +250 points, closing at 22,337
• Nifty Bank: 🔼 +1.5%, leading the recovery
• Broader Market Performance: Midcap and Smallcap indices surged over 1.3%

🔥 Top Gainers and Losers

Top Gainers of the Day

Stock	% Change
Adani Ports	+5.2%
Tata Steel	+4.8%
M&M	+4.5%
Bajaj Finance	+3.9%
IndusInd Bank	+3.6%

Top Losers of the Day

Stock	% Change
Dr. Reddy’s	-1.2%
HDFC Bank	-0.8%
Power Grid	-0.5%

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📈 5 Key Factors Driving the Market Surge

1️⃣ Trump’s Potential Tariff Rollback

A major catalyst behind the market rally was speculation that former U.S. President Donald Trump might roll back some tariffs, reducing pressure on Indian exports. Reports suggest that Trump’s economic advisors are considering revising trade policies that previously impacted Indian IT and manufacturing sectors.

2️⃣ Strong Buying in Metals, IT, and Banking Stocks

The Nifty Metal index jumped 2.5%, with stocks like Tata Steel and Hindalco leading the rally. IT stocks also performed well, supported by the weakening US dollar and strong global demand. The banking sector saw a 1.5% rise, led by IndusInd Bank, ICICI Bank, and SBI.

3️⃣ FII Buying Resumes After Heavy Outflows

Foreign Institutional Investors (FIIs) turned net buyers, pumping fresh liquidity into the Indian stock market. After nearly two weeks of consistent outflows, institutional buying sentiment improved, reflecting optimism about the Indian economy’s resilience.

4️⃣ Positive Global Cues

• Wall Street Rebound: The S&P 500 and Nasdaq ended higher overnight, providing a strong cue for Indian markets.
• Asian Market Rally: Japan’s Nikkei 225 and China’s Shanghai Composite were in the green, further strengthening investor sentiment.

5️⃣ Short Covering and Technical Rebound

After a 10-day losing streak, traders engaged in short covering, driving a sharp upside movement. Nifty successfully held the 22,000 support level, triggering a technical bounce-back.

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🏦 Sectoral Performance: Which Sectors Led the Charge?

Sector	Performance
Metals	🔼 +2.5%
IT	🔼 +1.8%
Auto	🔼 +1.7%
Banking	🔼 +1.5%
Energy	🔼 +1.3%

The metal sector emerged as the biggest winner, supported by rising commodity prices and strong global demand for steel and aluminum. IT stocks gained due to expectations of easing U.S. policies on outsourcing.

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💡 Expert Opinions on the Market Rally

Bullish Sentiment Returns

According to Abhay Agarwal (Piper Serica) on ET NOW,

“The Indian stock market was long overdue for a bounce-back. With Trump’s policy shift on tariffs and strong global cues, we may see a further upside in the near term.”

Cautious Optimism

However, analysts at Economic Times warn,

“This could be a dead cat bounce. If global markets remain uncertain, we need sustained FII buying to confirm a bullish trend.”

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🔮 What’s Next? Market Outlook for March 6, 2025

• Technical Resistance:
  • Nifty faces resistance at 22,500
  • Sensex must sustain above 73,800 for further upside
• Key Events to Watch:
  • US Fed Policy Comments on inflation and rate cuts
  • RBI Governor’s Speech on India’s economic outlook
  • Oil Price Fluctuations, which can impact energy stocks

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🚀 Conclusion: A Turning Point or Just a Relief Rally?

The strong rebound in Sensex and Nifty has lifted investor sentiment, but the sustainability of this rally depends on global market stability, FII flows, and domestic earnings performance. Short-term traders may see further upside, while long-term investors should focus on quality stocks with strong fundamentals.

📌 Stay tuned for more stock market updates! 🚀