FII buying returns, global markets support gains, and Bharti Airtel, IndusInd Bank lead the rally
The Indian stock market opened on a strong note on March 26, 2025, marking the eighth consecutive session of gains. Investor sentiment remained buoyant amid firm global cues and sustained foreign institutional investor (FII) activity. The benchmark indices—the Nifty 50 and the BSE Sensex—continued their upward momentum, with positive movements across several sectoral indices.
Indian Markets: Nifty 50 and Sensex Maintain Uptrend
At opening bell, the Nifty 50 climbed 32 points or 0.13%, settling at 23,700, while the BSE Sensex advanced 49 points or 0.06%, touching 78,066. This marks another milestone in the market’s recovery and reflects strong underlying confidence in India’s macroeconomic stability and corporate earnings outlook.
Broad-based buying interest, especially in select banking, telecom, and financial stocks, provided upward support. Defensive sectors such as healthcare and power also saw selective interest.
Top Performers and Laggards
In early trading, several key stocks led the charge:
Top Gainers on Nifty 50:
IndusInd Bank
Bharti Airtel
Bajaj Finserv
Power Grid Corp
HDFC Life Insurance
These stocks benefited from continued sectoral rotation and investor confidence in stable earnings projections. The telecom sector, in particular, received a boost on expectations of increased data demand and infrastructure investment, benefiting stocks like Bharti Airtel.
Top Losers on Nifty 50:
Bajaj Auto
Axis Bank
Larsen & Toubro (L&T)
Tech Mahindra
NTPC
Profit booking in engineering, technology, and auto counters weighed on overall index gains, although losses remained modest.
FII Activity: Turning Point After Months of Outflow
Foreign institutional investors (FIIs) continued to show renewed interest in Indian equities. March marks the fourth consecutive session of net buying by FIIs, a notable shift after months of sustained selling pressure.
Since October 2024, FIIs had withdrawn over ₹3 lakh crore, driven by concerns over global inflation, U.S. interest rate hikes, and geopolitical tensions. However, March 2025 has shown signs of reversal, aided by easing U.S. bond yields, stable crude oil prices, and expectations of more accommodative global central bank policies.
This FII activity has played a key role in supporting the recent uptrend in Indian equities.
Global Markets Support Risk Appetite
The Indian markets took positive cues from global equity benchmarks, particularly in Asia and the United States.
U.S. Markets: Steady Gains on Tariff Optimism
On Tuesday, Wall Street extended its gains for a second straight session, fueled by growing optimism that upcoming U.S. tariffs may be softer than previously feared. A reduction in tariff intensity is expected to reduce supply chain costs and bolster corporate profitability.
S&P 500 rose 0.16% to 5,776.65
Nasdaq Composite advanced 0.46% to 18,271.86
Dow Jones Industrial Average edged up 4 points (0.01%) to 42,587.50
This rally reflects optimism about the broader economic environment, with tech and consumer discretionary stocks driving the Nasdaq’s outperformance.
Asian Markets: Tracking Wall Street’s Momentum
Asian indices opened higher on Wednesday, extending gains on the back of Wall Street’s strong performance and signs of stabilization in global macroeconomic indicators.
Japan’s Nikkei 225 advanced 0.39% to 37,929
Asia Dow gained 0.21%, trading at 3,744.83
South Korea’s Kospi rose 0.42% to 2,626
Shanghai Composite traded flat at 3,370
Positive cues from Asia further supported Indian equities, especially in export-oriented and multinational segments.
Sectoral Performance: Banking, Telecom, and Power in Focus
The broader market remained largely supportive, with several sectoral indices in the green during early trade.
Banking Stocks: Continued optimism around credit growth and easing interest rate expectations helped lift private banks like IndusInd Bank and Axis Bank. PSU banks also saw selective buying.
Telecom: Bharti Airtel’s rally highlighted investor focus on telecom infrastructure expansion and increased average revenue per user (ARPU) expectations. The sector is gaining attention as 5G rollout and data usage surge.
Power and Utilities: Power Grid Corp led the gains in the utilities segment, supported by stable demand forecasts and institutional interest in energy infrastructure.
Auto and Infra: Stocks like Bajaj Auto and L&T saw mild corrections after recent rallies, reflecting a technical pullback rather than fundamental weakness.
Broader Market Indicators and Volatility
Midcap and small-cap indices traded with a mixed bias. Investors displayed selective interest in growth stocks and export-driven sectors.
India VIX, the volatility index, edged slightly lower, signaling a continued risk-on sentiment among market participants. However, analysts remain cautious about potential corrections after the eight-day rally.
Macroeconomic and Policy Outlook
India’s domestic economic indicators remain supportive of market sentiment. Inflation has shown signs of easing, GDP growth projections for FY26 remain intact, and the Reserve Bank of India is expected to maintain a balanced policy stance in its upcoming monetary review.
With the general elections approaching, market participants continue to monitor political developments closely. Policy continuity and pro-growth budget implementations remain key themes shaping investor sentiment.
Technical Levels to Watch
Nifty 50 Resistance: 23,750 – 23,800
Nifty 50 Support: 23,550 – 23,500
Sensex Resistance: 78,250
Sensex Support: 77,750
A close above these levels on strong volume may trigger fresh breakouts, while failure to hold support could lead to mild profit booking.
Outlook for the Rest of the Week
Momentum remains positive heading into the final days of March. Sustained FII inflows, global stability, and supportive earnings outlook are likely to keep market sentiment buoyant. However, caution is warranted ahead of the monthly expiry and key global macroeconomic announcements expected later this week.
If current trends persist, benchmark indices may attempt fresh record highs. Attention will remain on banking, telecom, and infrastructure sectors, while rotation into defensives may occur if volatility spikes.
On March 26, 2025, Indian stock markets continued their upward trajectory for the eighth consecutive session, backed by strong global cues, renewed FII participation, and a broad-based sectoral rally. Positive signals from the U.S. and Asian markets, combined with encouraging macroeconomic data, suggest that the bullish momentum may sustain in the near term—though short-term consolidation cannot be ruled out. Investors and analysts will closely track global developments, earnings trends, and policy signals for cues on the next market direction.
