Daijiworld Media Network - New Delhi
New Delhi, Mar 22: The Indian stock markets experienced a strong rebound this week, with benchmark indices Nifty and Sensex surging over 4%—marking their best weekly performance in four years. Experts attribute this rally to improved investor sentiment, a resurgence in foreign investments, and positive global cues.
Nifty recorded its highest weekly gain since February 2021, while Sensex posted its biggest jump since July 2022. The market resurgence was driven by the return of Foreign Institutional Investors (FIIs), a strengthening Indian rupee, and value buying opportunities that emerged after months of stock corrections.
By the end of the week, Nifty closed at 23,350.4, while Sensex settled at 76,905.51, both near their weekly highs. The market’s uptrend extended into Friday, with benchmark indices rising for the fifth consecutive session, supported by broad-based buying. The Nifty midcap and smallcap indices gained 1.4% and 2.1%, respectively, reflecting the strength of the rally.
Ajit Mishra, SVP, Research at Religare Broking Ltd., highlighted several factors behind the market’s sharp recovery. Positive flows from FIIs in both cash and derivatives markets provided much-needed stability, while a decline in crude oil prices and the dollar index further supported investor confidence. Additionally, dovish signals from the US Federal Reserve hinting at future rate cuts, coupled with reports of de-escalation in the Russia-Ukraine conflict, contributed to the bullish sentiment.
The rally was broad-based, with all major sectors participating. Real estate, energy, and pharma stocks emerged as top gainers, while midcap and smallcap indices surged between 7.7% and 8.6%, boosting overall market momentum.
Looking ahead, experts suggest that with no major domestic economic events lined up, market focus will shift to the expiry of March derivatives contracts and FII activity. Globally, investors will closely monitor the US markets, where tariff-related updates and GDP growth data could influence sentiment. While US markets saw a temporary recovery after recent declines, analysts anticipate potential volatility in the coming sessions.
Traders are advised to adopt a "buy on dips" strategy, particularly in sectors showing consistent strength. Banking, financials, metals, and energy stocks remain top picks, while selective opportunities in PSU and auto stocks may also offer promising returns.