Indian Stock Market Rallies: Nifty and Sensex Exit Correction Territory with Six-Day Winning Streak

Market Performance

In March 2025, the Indian stock market maintained its upward momentum, with benchmark indices Sensex and Nifty 50 marking six consecutive sessions of gains. This rally, driven primarily by banking and information technology stock gains, propelled the indices to one-month highs.

The Nifty 50 index surpassed the psychological barrier of 23,500, while the Sensex surged by more than 1,100 points. This recovery allowed both indices to exit the correction phase, defined by a 10% decline from their all-time highs. At the session's close, the Sensex recorded an increase of 1,131.93 points, or 1.47%, reaching 78,037.44. Meanwhile, the Nifty 50 rose by 328.25 points, or 1.41%, closing at 23,678.65.

Market breadth remained positive, with 2,389 stocks advancing, 1,582 declining, and 155 remaining unchanged. However, market volatility remained elevated, with the India VIX index rising by 9% to approximately 14.

Broader Market and Sectoral Performance

Broader market indices mirrored the positive sentiment, with the Nifty Midcap 100 and Nifty Smallcap 100 each climbing around 1.5%. All 13 sectoral indices closed with gains. Banking sectors led the surge, with Nifty Bank, Nifty PSU Bank, and Nifty Private Bank rising by 2-3%. Nifty IT, Nifty Realty, Nifty Energy, and Nifty Auto posted gains between 1-2%.

Main News

Multiple factors supported the recent rally, including strong global market cues, a stable Indian rupee, and increased foreign institutional investment (FII) activity. After a prolonged selling period, FIIs turned net buyers three out of the last four sessions. Improved domestic growth prospects and a weaker dollar also contributed to the positive market sentiment.

The Bank Nifty index experienced strong buying interest, opening with a gap-up at 51,874 and closing at 50,860, reflecting a gain of over 1000 points. This brought the Bank Nifty's seven-session gain to 4,000 points, or 8.30%, positioning it above the 2025 year-to-date (YTD) level of 50,860.

Company Details

Among the top gainers were leading banking stocks such as HDFC Bank, Axis Bank, SBI, Kotak Mahindra Bank, and ICICI Bank, which advanced by 2-5%. Reliance Industries also increased the market's strength by over 2%. Information technology companies, including TCS, Tech Mahindra, Wipro, and HCLTech, rebounded with 2-4% gains.

These key banking and IT stocks and Reliance Industries accounted for more than half of the Nifty 50's total gains during the session.

Summary

The Indian stock market sustained its upward momentum, extending gains for the sixth consecutive session on March 24, 2025, as the Nifty 50 and Sensex emerged from correction territory. Driven by strong performances in banking and IT sectors, the indices reached one-month highs. Positive global cues, increased foreign and domestic institutional participation, and expectations of economic recovery contributed to the ongoing rally. Despite high volatility, broader market indices and all significant sectors showed positive performance, reflecting strong investor sentiment.