The Indian stock market stayed higher for the second day in a row on Tuesday, March 17, supported by a strong recovery in metal and auto stocks, which offset weakness in tech and consumer goods counters.
The Nifty 50 closed the session with a 0.74% gain at the 23,581 level, while the Sensex ended 0.65% higher at 75,992. The broader markets also mirrored the trend, with the Nifty Midcap 100 index rising 0.65% and the Nifty Smallcap 100 advancing even further by 1%.
All major sectoral indices ended in the green, with Nifty Metal emerging as the top gainer, rising 2.82%, while Nifty Auto rallied 2.11%. This was followed by Nifty Realty, Nifty Media, and Nifty Consumer Durables, which posted gains of over 0.75%. On the losing side, Nifty IT and Nifty FMCG were the only sectors that closed in the red.
The recent sell-off, driven by oil-led inflation concerns, has pushed domestic equities into oversold territory, allowing value buyers to step in and drive a nearly 2% recovery in the Nifty 50 from the recent lows. However, the index is still down 6.34% so far in March and 10% year-to-date.
Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, said, “Indian equities extended their recovery for a second consecutive session, supported by easing volatility and selective sectoral strength, although underlying caution continues to shape market behaviour.”
“A key positive was the sharp decline in India VIX, which dropped nearly 8% to sub-20 levels. The cooling in volatility, especially on derivatives expiry, accelerated theta decay and reduced the risk premium in options, allowing markets to stabilise after recent turbulence,” he further added.
(more to come)