Market Performance
On March 6, 2025, domestic equity benchmarks Sensex and Nifty 50 recorded gains for the second consecutive session. After beginning the day with fluctuations, alternating between modest gains and losses, both indices stabilized and ended in positive territory. The recovery during the session was supported by advances in major stocks, particularly those linked to crude oil, such as Reliance Industries, Asian Paints, and BPCL.
The overall market sentiment remained favourable, as the number of advancing stocks outpaced the declining ones.
At the closing bell:
- Sensex increased by 609.86 points (0.83%), reaching 74,340.09.
- Nifty 50 advanced by 207.40 points (0.93%), settling at 22,544.70.
2857 recorded gains, 979 shares registered declines, and 104 remained unchanged.
Main News
Crude oil prices declined following the announcement from OPEC+, which shared plans to phase out voluntary production cuts progressively. The group is preparing to restore around 2.2 million barrels per day (mbpd) over two years. This represents approximately 38% of the 5.9 mbpd reductions enforced since 2022.
As a result of these developments:
- Brent crude prices fell 6.5% over four sessions, hitting their lowest levels since December 2021.
- WTI crude prices dropped by 5.8%, marking their weakest levels since May 2023.
A decrease in crude oil prices benefits sectors that rely heavily on oil as an essential input, as reduced costs can positively impact profit margins. In this context, companies like Asian Paints and BPCL showed notable upward movements, posting gains between 3% and 5%.
Metal stocks also experienced a surge, influenced by a decline in the US Dollar Index, which dropped to a four-month low. This movement aligned with optimism surrounding stimulus measures from China, supporting demand in emerging markets such as India.
Company Details
Reliance Industries
Reliance Industries contributed to the market's upward momentum with a nearly 3% increase in its share price.
Asian Paints and BPCL
Both companies benefited from the decline in crude oil prices, with gains ranging from 3% to 5%.
Tech Mahindra
In contrast to the broader market trend, Tech Mahindra witnessed a decline of over 2%, making it one of the session's notable laggards.
Financial Sector Developments
The Nifty Bank index reverses its early losses, closing 0.3% higher. This recovery followed the Reserve Bank of India's (RBI) efforts to support liquidity, including:
- Open market purchases of government securities.
- USD/INR swaps totalling approximately Rs 1.9 lakh crore.
- A previously conducted $10 billion swap on February 28 aimed at strengthening long-term liquidity.
Broader Market Performance
- BSE Smallcap Index gained nearly 2%.
- BSE Midcap Index rose close to 1%.
Sectoral Highlights
- Nifty Metal Index led the gains with an increase of nearly 3%.
- Nifty Energy and Nifty Oil & Gas followed with rises exceeding 2%.
- Other advancing sectors included Nifty FMCG, Nifty Media, and Nifty Pharma, each climbing between 1% and 2%.
Summary of the Article
Equity markets extended their recovery for a second session on March 6, 2025, with key support from stocks linked to crude oil and energy. Following updates from OPEC+ regarding gradual production increases, falling global crude oil prices contributed positively to specific sectors, particularly those dependent on oil as a raw material.
In addition, the drop in the US Dollar Index and supportive policy actions from the Reserve Bank of India aided sentiment across financial and metal stocks. Broader market indices also reflected this positive trend, showcasing widespread gains.
Global developments, such as trade-related updates and international policy measures, also played a background role in shaping the day's market mood.
Easy & quick
Leave A Comment?