Indian Stock Markets Rally: Nifty and Sensex Log Best Weekly Gains in Four Years

Market Performance

Indian stock markets maintained their positive momentum for the fifth consecutive session, with benchmark indices Nifty 50 and Sensex closing on a strong note. The index recorded over 4% weekly gains, marking their best performance in four years.

On March 21, the Sensex climbed by 557.45 points, or 0.73%, to reach 76,905.51, while the Nifty 50 advanced 159.75 points, or 0.69%, settling at 23,350.40. Market breadth remained positive, with 2,684 stocks advancing, 1,179 declining, and 118 remaining unchanged. The Nifty 50 briefly crossed the 23,400 mark during the session, achieving this level for the first time in two months.

Market Trends and Sectoral Performance

Gains were observed across multiple sectors, with 11 out of 13 major sectoral indices closing in positive territory. The Nifty Realty index led the gains, rising over 2%. Other sectors, such as Nifty Energy, Nifty Bank, Nifty Auto, Nifty Infra, Nifty Pharma, Nifty Media, and Nifty PSU Bank, posted gains ranging between 1% and 2%.

Midcap and smallcap indices outperformed the broader market, with the Nifty Smallcap 100 and Nifty Midcap 100 indices recording 1-2% gains. The midcap index has continuously grown over the last five sessions, registering an 8% increase.

Company-Specific Developments

Bajaj Finance witnessed a significant surge, reaching an all-time high following the appointment of its Managing Director, Rajeev Jain, to the board of Bajaj Finserv in an executive capacity. Jain will continue overseeing Bajaj Finance while contributing to Bajaj Finserv's expansion into new sectors, including healthcare. Bajaj Finserv, which holds a 54% stake in Bajaj Finance, remains a key promoter of the firm.

On the other hand, IT stocks faced pressure due to lower-than-expected revenue guidance from Accenture. Given the reliance of Indian IT companies on global service exports, Accenture's performance often serves as an indicator for the sector.

Technical Market Outlook

From a technical perspective, the Nifty 50 surpassing its 50-day exponential moving average (EMA) in the previous session reinforced expectations of sustained bullish momentum. The immediate resistance level stands at the 23,300-23,400 range, with the previous high of 23,800 marking the next potential resistance zone. Support levels are identified at 23,000 and further at 22,800.

Summary

Indian stock markets exhibited a strong recovery, registering their best weekly performance in four years. Gains were broad-based, with multiple sectors witnessing upward movement. Midcap and smallcap stocks outperformed, reflecting increased investor participation. Key developments, such as Bajaj Finance's leadership transition and the impact of Accenture's earnings on the IT sector, influenced stock-specific movements. Technical indicators suggest continued bullish sentiment, with key resistance and support levels being monitored closely.