Sensex jumps 411 pts, Nifty up 123 as markets rally on tariff relief hopes, strong FII inflows & crude dip
Equity benchmarks in India opened on a strong note on Monday, March 24, 2025, continuing the rally from the previous week. The positive sentiment followed indications that the United States may ease the stance on impending trade tariffs. Optimism dominated early trades, supported by healthy foreign inflows, strong performance from banking and infrastructure stocks, and easing crude oil prices.
Benchmark Indices Open Firm
The BSE Sensex rose by 411.15 points, or 0.53%, reaching 77,316.66 in early trade. The NSE Nifty followed suit, gaining 123.20 points, or 0.53%, to trade at 23,473.60. The uptrend reflected continued investor confidence amid global uncertainties.
Banking and financial stocks led the rally, with Kotak Mahindra Bank advancing by 2.75% and Axis Bank gaining 2.01%. These gains reflected renewed optimism in the financial sector, possibly driven by easing global liquidity concerns and strong quarterly expectations.
Larsen & Toubro (L&T), the infrastructure heavyweight, climbed 1.92%, extending gains from last week following the company’s decision to raise ₹12,000 crore through debt to fund expansion in sectors like defense and technology. Power Grid Corporation also added 1.80%, supported by investor interest in defensive stocks amid volatile global cues.
Pressure on Select Stocks
While the overall market traded in positive territory, profit-booking pulled down a few key counters. Titan Company slipped 2.33% in early trade, possibly due to valuation concerns and investor rotation into underperforming sectors. Mahindra & Mahindra also declined by 2.13%, with weakness attributed to rising input costs and muted outlook in the rural segment.
Global Influences and Trade Developments
Market sentiment received a significant boost after reports suggested that U.S. President Donald Trump may implement upcoming trade tariffs in a more measured and selective manner than previously signaled. This speculation emerged following Wall Street’s positive close on Friday, which helped calm investor nerves heading into the new week.
Foreign Institutional Investors (FIIs) remained net buyers on Friday, purchasing ₹7,470 crore worth of Indian equities. These inflows added further momentum to domestic equities, particularly in sectors linked to economic recovery and government-led infrastructure development.
Although tariffs on imports were scheduled to come into effect on Tuesday, traders largely anticipated that a more nuanced policy would avoid significant disruption to global trade flows. This expectation led to broad-based gains across Asian markets, with India showing resilience despite uncertainty around geopolitical and trade matters.
Crude Oil Trends Amid Russia-Ukraine Talks
Crude oil prices softened during early Asian trade on Monday. The decline followed news that delegations from the United States and Russia planned to meet to discuss a potential ceasefire in the ongoing Russia-Ukraine war. The anticipation of a truce or easing of military conflict prompted traders to reduce long positions in oil futures.
Lower crude prices brought relief to emerging market economies such as India, which rely heavily on oil imports. As a result, sectors sensitive to input costs, such as power and logistics, witnessed marginal gains.
Currency Markets: Rupee Moves Higher
The Indian rupee appreciated by 12 paise to trade at 85.86 against the U.S. dollar in early morning deals. The appreciation came on the back of strong foreign fund inflows and improving macroeconomic indicators, including rising forex reserves and lower import bills due to softening crude prices.
Support from domestic institutional investors and positive cues from the U.S. dollar index also helped strengthen the rupee, which had shown signs of weakness earlier in the month amid fears of aggressive U.S. interest rate hikes.
Sectoral News and Stock-Specific Developments
Several corporate announcements and sectoral movements made headlines in Monday’s trading session:
NCC Ltd rose by 2.40% on the NSE to ₹210.98 after securing fresh orders worth ₹1,480.34 crore. These contracts boosted investor confidence in the company’s execution capabilities and revenue visibility for the coming quarters.
Samvardhana Motherson International gained 2.25%, reaching ₹134.30, after the board approved a ₹200 crore investment in its subsidiary, CIM Tools. The capital infusion will be routed through compulsory convertible debentures, with the aim to enhance the group’s aerospace manufacturing operations.
Piramal Enterprises traded 0.54% higher at ₹1,001.85 following the renaming of its financial arm from Piramal Capital & Housing Finance Ltd to Piramal Finance Ltd. The name change reflected the group’s strategic move to reposition itself as a broader financial services provider.
Greelam Industries slipped by 2.24% to ₹268.20 after the company announced the allotment of 12.75 crore bonus shares to eligible shareholders. While the bonus issue increased liquidity in the stock, the price adjusted downward accordingly.
RailTel Corporation surged 8.65% to ₹336.55 following a work order worth over ₹25 crore from Hindustan Petroleum Corporation Ltd. The contract, which includes network solutions and communication infrastructure, reaffirmed RailTel’s presence in the enterprise solutions space.
Poonawalla Fincorp jumped 3.81% to ₹347.55 after unveiling an AI-powered underwriting solution. The new technology is designed to enhance risk assessment and streamline loan disbursals, positioning the company as a tech-forward player in the NBFC segment.
Biocon Pharma, a subsidiary of Biocon, received approval from the U.S. Food and Drug Administration (USFDA) for Norepinephrine Bitartrate Injection USP. The stock rose by 0.77% to ₹346.75, reflecting confidence in the company’s ability to expand its generic injectables portfolio in global markets.
Broader Market Trends
Mid-cap and small-cap stocks traded mixed as investors rotated between sectors based on valuation comfort and growth visibility. Broader indices showed relative underperformance compared to large-cap benchmarks, as investors focused on safer bets in sectors such as banking, capital goods, and utilities.
Information technology stocks remained subdued amid global uncertainties and mixed outlook from U.S.-based tech giants. However, select buying emerged in software mid-caps with exposure to AI, cloud services, and digital transformation.
Macro Outlook and Investor Strategy
Market participants expect the focus to remain on global macroeconomic signals, tariff developments, and crude oil price trends. With foreign flows turning supportive, and domestic fundamentals holding strong, analysts anticipate a measured upward movement in the indices.
However, caution may emerge in the days ahead as tariff policies unfold and key central bank updates loom. Investors are also tracking inflation data and GDP forecasts in major economies to gauge potential policy actions by the Federal Reserve and the Reserve Bank of India.
Indian equity markets opened strong on March 24, 2025, led by robust gains in banking, infrastructure, and power sectors. Global developments, especially the possibility of softened U.S. tariffs and peace talks between Russia and Ukraine, contributed to the bullish sentiment. Corporate updates and sector-specific moves added momentum, while the appreciation in the rupee and decline in crude oil prices offered macro support.
With optimism returning to global markets and domestic triggers pointing to resilience, Indian equities appear well-positioned to ride the current wave—though vigilance remains essential as global uncertainties continue to influence investor behavior.
