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.
Metals, autos surge; capital market and EMS stocks join the rally
Strong buying emerged across metal stocks in trade, with Lloyds Metals & Energy surging 7.8% to ₹1,236 apiece. Nalco, SAIL, and Tata Steel also joined the rally, gaining 6.2%, 6.1%, and 4.5%, respectively.
Other metal stocks such as APL Apollo Tubes, Hindustan Copper, and Jindal Stainless closed higher by over 3%.
Auto stocks also mirrored a similar trend, with all 15 constituents of the Nifty Auto index ending in the green, led by TVS Motor Company, which jumped 3.5%.
This was followed by UNO Minda, Mahindra & Mahindra, Bharat Forge, Sona BLW Precision Forgings, Exide Industries, and Samvardhana Motherson International, all rising over 2%.
The recovery rally in domestic equities also boosted select capital market stocks such as BSE and MCX, which gained 4% and 4.55%, respectively.
Food delivery aggregators—Eternal and Swiggy—also closed with strong gains of 5.7% and 3%, respectively.
Meanwhile, EMS stocks such as Syrma SGS, Amber Enterprises, Kaynes Technology, and Avalon Technologies closed with gains ranging between 2% and 5% after global brokerage firm JPMorgan upgraded ratings on multiple stocks.
Selling pressure in select stocks; Reliance Infra, eClerx among top losers
On the losing side, Reliance Infrastructure emerged as the top laggard, falling another 4% to ₹77.9 apiece, extending its losing streak to a third straight session. Poonawalla Fincorp was another major laggard among Nifty 500 stocks, dropping 4.11% to ₹406 apiece.
IDBI Bank and Godrej Industries also declined, each falling 3.6%. Extending its losses for the second consecutive session, eClerx Services shares dropped another 3.53% to ₹1,474 apiece.
Losses in Balrampur Chini Mills deepened further, with the stock falling 3.3% to ₹467 apiece, while Kalpataru Projects slipped 3% to ₹1,053 apiece. Other stocks such as Radico Khaitan, Cholamandalam Finance, Mangalore Refinery, Ola Electric Mobility, Timken India, and Swan Corp also declined by over 3%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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