Sensex Jumps 944 Pts, Nifty Climbs 312 Pts On March 5; Five Reasons Why Market Is Rising! What's Ahead?

Indian stock market recorded strong buying sentiment with Sensex and Nifty 50 gaining by more than 1% each. All sectoral indices saw a bull trend with metal, IT, PSU Bank, oil and gas and auto stocks surging the most. Sensex is shy of the 74,000 mark, and Nifty neared 22,400 levels. Indian equities outperformed Wall Street which saw a bearish trend after Trump threatened to impose reciprocal tariffs on foreign nations from April 2, heightening global uncertainties.

Sensex skyrocketed by 944 points to hit an intraday high of 73,933.80, while Nifty 50 zoomed by 312.25 to hit an intraday high of 22,394.90.

Nifty has breached its 5-day SMA of 22,266 levels. While the benchmark is higher from its support and resistance levels.

Here's what moved the market:

1. Heavyweight stocks:

On Sensex, 26 large-cap stocks were on a bullish trend, while 3 declined and 1 stock remained unchanged.

On Nifty, 45 large-caps surged, and only 5 declined.

Top bulls are M&M, Power Grid, Adani Ports, Tata Steel, NTPC, Tata Motors and Tech Mahindra which climbed by 3% to 4.5%. Other heavyweight such as Bharti Airtel, Kotak Bank, HCL Tech, Asian Paint, Infosys, Maruti Suzuki, Nestle, Axis Bank, Titan, TCS, Reliance Industries, SBI, and HUL also contributed massively with gains of 1% to 2.5%.

2. Midcap and Small-caps Strong Rebound!

Nifty Midcap 100 index zoomed by over 2%, while Smallcap 100 index advanced by 2.2%.

The top 5 best performing midcap stocks of the day are Coforge, Oil India, KPIT Tech, Sona BLW Precision and Persistent Systems which advanced by 6% to 11%.

The best smallcap stocks are Redington, IIFL, KPI, Aster DM and NBCC shares that jumped by 5% to 10%.

3. Metal Stocks Shine Strong

Nifty Metal index jumped by 264.15 points or 3.2% to trade at 8,611.90, which was near its intraday high of 8,629.45. Welspun Corp, Jindal Stainless, Hindustan Copper, Tata Steel and Vedanta shares climbed by 4% to 6%.

4. IT Stocks In Robust Rally

Nifty IT index zoomed by 971.45 points or 2.61% to trade at 38,248.40, which was near its intraday high of 38,378.70. Coforge and Persistent were top gainers. Other stocks on the bull run were LTTS, Mphasis, Tech Mahindra, LTIMindtree, and HCL.

5 Other Indices:

Overall, all sectoral indices were in green. Nifty Auto index surged by 2.7%, while Nifty PSU Bank, Nifty Realty and Nifty Oil & Gas indices advanced by 2.3% each. Other indices were above 1%.

The market also took comfort from Commerce Secretary Howard Lutnick's statement that there is a possibility of Trump to compromise on tariffs between the US, Canada, and Mexico. US stock futures climbed eventually on Wednesday.

The comments come after Trump's 25% tariffs on goods from Canada and Mexico, along with an additional 10% duty on Chinese imports, took effect on Tuesday. These measures prompted retaliatory actions from the affected countries, raising concerns about an escalating global trade war that could impede economic growth, as per Trading Economics.

Another positive factor to lift equities will be oil prices that have declined on Wednesday.

Brent crude slipped by $71 per barrel, remaining close to a four-month low, as concerns over OPEC+ production increases weighed on prices. The group confirmed plans to phase out 2.2 million bpd of output cuts starting in April, with monthly increases of 138,000 bpd until late 2026. Further pressuring prices, the Trump administration suspended all US military aid to Ukraine, following reports of potential sanctions relief for Russia, which could boost Russian oil exports, as per Trading Economics data.

Additionally, Asian shares rebounded after China's stimulus package. The country has forecasted 5% economic growth annually.

The market has performed higher despite uncertainties. Prashanth Tapse, Senior VP (Research), Mehta Equities said, the market is dealing with the pessimism of the likely impact of Trump's reciprocating tariff policy amidst escalating trade tensions and growing signs of an economic slowdown and sticky US inflation.

In the latest update, Trump has reiterated that reciprocal tariffs will come into effect from April 2. He stated that over decades, foreign countries have imposed tariffs against the US, and now it's their turn. While addressing a Joint Session of Congress, Trump highlighted that on average, the European Union, China, Brazil, India Canada, and countless other nations have imposed huge tariffs compared to the tariffs charged by the US, which he finds is unfair.

Giving an example of India, Trump said India charges US, auto tariffs higher than 100%.