Stock Market Today: Nifty, Sensex jump 0.83%

Indian equities extended their rebound on Tuesday, with technology and auto stocks powering benchmark gains even as global crude remained elevated and the rupee slid to a fresh record low. The Nifty 50 rose 196.65 points, or 0.83%, to close at 23,777.80, while the BSE Sensex added 633.29 points, or 0.83%, to settle at 76,704.13.

The day’s move reflected two forces playing out together - bargain hunting after a sharp selloff and a risk reset as investors positioned ahead of the US Federal Reserve’s policy decision. Cooling volatility also helped. India VIX eased further over the last few sessions, signalling that panic hedges were getting unwound.

What drove the market higher

The immediate driver was a rotation back into beaten-down largecaps, particularly IT, after brokerage commentary and management interactions reduced near-term fears around pricing pressure from rapid AI adoption. With global cues steadier and US yields not rising sharply into the Fed, traders added exposure to rate-sensitive and export-heavy pockets.

However, the rebound was not a clean risk-on day. The market also had to digest an uncomfortable macro mix: crude oil above $100 per barrel due to the Iran conflict’s impact on shipping lanes, and a weaker rupee that underlined external vulnerability.

Global cues: Fed in focus, oil still the headline risk

Overnight cues were mixed but less hostile than in the previous week. Investors globally stayed focused on the March 17-18 FOMC meeting, with markets largely expecting the Fed to keep rates unchanged. The bigger swing factor remained the policy statement and guidance - especially how the Fed balances sticky inflation risks against any growth slowdown.

Oil was the key complication. Crude prices were around $103 a barrel after Iran warned that the Strait of Hormuz would not “return to normal,” keeping supply-risk premiums elevated. For India, the direction of crude matters not only for inflation expectations but also for corporate margins, the current account deficit, and the rupee.

How Indian markets performed

The broader market participated, with midcaps outperforming in the rebound. Nifty Midcap 100 gained close to 2%, indicating short covering and tactical buying beyond the index heavyweights.

Within the headline indices, the advance was supported by a mix of defensives and cyclicals. The Sensex and Nifty did see some intraday paring from the highs, with the currency and crude backdrop keeping sentiment cautious into the close.

Leadership: IT, autos and banks

Technology led the day. The Nifty IT index rose about 2.7-2.8%, with large IT services names among the top contributors to Nifty today. The move was driven by a combination of global tech strength and commentary suggesting AI is not yet triggering widespread contract repricing or immediate demand shock.

Autos also held firm, with the Nifty Auto index up around 1.8-1.9%. After a volatile fortnight dominated by macro worries, autos benefited from bargain buying and a perception that domestic demand trends remain steadier than global-facing sectors.

Banks provided steady support rather than explosive upside. Nifty Bank gained about 0.8%, helping the benchmarks hold gains. Select financials were in focus on deal and capital headlines, including Axis Bank’s planned infusion into its consumer lending arm.

Laggards: defensives mixed, commodity plays cautious

FMCG was relatively subdued, reflecting rotation out of defensives as traders sought higher beta exposure. Metals were also soft-to-flat, with investors balancing any demand optimism against the risk that prolonged high energy prices could squeeze global growth.

Energy-linked stocks remained a stock-specific trade given the complexity of elevated crude - upstream gains can be offset by concerns around policy risk and marketing margins for downstream players.

Corporate developments that moved the tape

Two large corporate headlines stood out.

Reliance Industries remained in focus after reports said the group has begun preparations for a Jio Platforms IPO, with a draft red herring prospectus potentially filed soon. Even without confirmed timelines, the story matters because it points to a marquee capital markets transaction and could influence sentiment across telecom, tech platform valuations, and broader IPO appetite.

Adani Enterprises drew attention after the NCLT approved its resolution plan for Jaiprakash Associates. The approval clears a key legal hurdle in the insolvency process and hands Adani a significant land bank in Noida and Greater Noida along with assets including hotels, stalled real estate projects, and cement capacity. The development also has implications for creditors and existing JAL shareholders, given the typical IBC outcomes around equity treatment.

Currency and rates: the day’s warning sign

While equities rose, the rupee was the day’s red flag. USD/INR weakened to record lows near 92.6. A combination of elevated crude, risk premium due to geopolitics, and positioning ahead of the Fed kept pressure on the currency.

For equity investors, a weaker rupee is a two-sided story. It can support exporters like IT in the near term, but it also raises imported inflation risk and can constrain policy flexibility if crude remains elevated.

What the move means for investors

Tuesday’s rise improved near-term sentiment, but it did not remove the main macro overhangs. The market’s message was that positioning had become stretched after the selloff and that investors were willing to buy quality largecaps on better global cues.

At the same time, the underlying risk framework is still tied to oil and global central bank communication. If crude stays above $100 for longer, analysts are likely to revisit earnings assumptions for FY27 and beyond, especially for sectors with high fuel sensitivity.

Near-term triggers to watch

The next 24-48 hours keep global cues in the driver’s seat. The Fed decision and commentary will shape risk appetite, the dollar, and emerging market flows. Oil remains the largest real-time macro variable for India.

Investors will also monitor FII flows, which have been volatile amid geopolitical risk, and any policy signals on managing external pressures. Corporate headlines around large transactions and IPO pipelines could continue to influence stock-specific trades.

For Nifty today, the close above 23,700 helps the rebound narrative, but sustainability will depend on whether crude and the rupee stabilise and whether global risk sentiment holds after the Fed.