Stock Market Today: Nifty +0.79%, Sensex +606

Market ends higher for third session

Indian equities extended their rebound on Wednesday, March 18, with benchmarks closing firmly in the green. The Nifty today settled at 23,767.85, up 186.70 points or 0.79%, while the Sensex today rose 606.04 points or 0.80% to 76,676.88.

The move was driven by a strong rally in information technology shares and continued follow-through buying after the recent sharp correction. The advance came even as macro risk signals stayed elevated, led by a record low in the rupee and crude oil holding above the $100 per barrel mark.

What moved the market today

The day’s tone was shaped by two cross-currents. On one side, investors continued to buy beaten-down large caps, with IT leading after the sector’s recent volatility and renewed focus on valuations. On the other, risk appetite remained capped by the Middle East conflict keeping oil prices elevated and by a sharp slide in the rupee, which reflects higher import-cost stress.

Market participants also positioned ahead of the US Federal Reserve’s policy announcement due later tonight, with expectations tilted towards a rate hold but with heightened attention on commentary around inflation risks from energy.

Global cues: Asia steady, Fed and oil in focus

Overnight cues were supportive as Wall Street ended modestly higher, while Asian equities traded with a cautious positive bias. However, crude remained the key global variable.

Oil prices stayed volatile after reports that crude surged to around $103 per barrel amid escalating tensions and warnings linked to the Strait of Hormuz. With energy acting as a direct input to inflation expectations, bond yields and the dollar are likely to stay sensitive to any developments from the Gulf region.

Nifty and Sensex performance: gains, but not euphoric

While headline indices posted close to 0.8% gains, the session was not a one-way run. The market pared part of the intraday rise, indicating that investors are still reluctant to chase momentum aggressively given macro uncertainty.

Broader markets were constructive, with midcaps and smallcaps outperforming in several pockets, reflecting selective risk-taking rather than a blanket risk-on shift.

Sector check: IT in the lead, autos keep pace

Technology shares led the rally, with the Nifty IT index outperforming on renewed buying interest in large-cap names. The sector’s move also reflected relief around near-term demand commentary and a reassessment of concerns that AI tools would immediately compress pricing across outsourcing contracts.

Autos remained strong and continued to recover from the earlier selloff. Banking and financials added support, though their gains were more measured compared to IT.

FMCG and defensives were relatively subdued, while metal stocks lagged slightly, mirroring the market’s preference for rate-sensitive and growth-linked pockets on the day.

Key stocks: winners and losers

Among notable gainers, IT heavyweights such as Infosys, TCS, and HCL Tech featured prominently, helping lift the Nifty and setting the tone for broader tech participation.

In financials, Axis Bank stayed in focus after it approved an infusion of Rs 1,500 crore into Axis Finance, its consumer lending arm, an announcement that helped sentiment in the NBFC-linked ecosystem.

On the weaker side, MCX slipped after commentary around NSE’s commodity market roadmap and potential new product launches, which traders viewed as a competitive overhang in the near term.

Outside the benchmark space, IDBI Bank remained under pressure after the government scrapped the strategic sale plan, with the stock extending recent losses and analysts flagging concerns around investor confidence and valuation discovery.

Rupee at record low: support for exporters, risk for inflation

A key macro development was the rupee hitting a record low near 92.6 to the dollar. The move reflects a mix of elevated oil-linked import demand, risk-off flows amid geopolitical uncertainty, and global dollar dynamics ahead of the Fed.

A weaker currency can be supportive for export-heavy sectors such as IT and pharma through translation benefits, but it also raises risks of imported inflation. For equities, the rupee level matters because it can influence expectations on RBI liquidity, domestic rates, and corporate margin pressures in oil-sensitive sectors.

Corporate headlines: Reliance, Adani and Tata Steel

Corporate news flow remained busy.

Reliance Industries drew attention after a Bloomberg report said the company has begun preparations for a Jio Platforms IPO, with a draft red herring prospectus (DRHP) filing potentially expected soon. While timelines remain market-dependent, the update reinforced investor focus on value unlocking and capital market activity.

Adani Enterprises was in focus after the NCLT approved its resolution plan for Jaiprakash Associates, clearing a major step in the insolvency process. The approval is significant for the asset footprint in north India real estate and associated businesses, and it also sets the framework for outcomes for creditors and existing equity.

Tata Steel announced board approval for the merger of Neelachal Ispat Nigam (NINL) into the parent, alongside an approval for up to $1 billion investment into T Steel Holdings Pte from FY27, subject to approvals.

What today’s move means for investors

The rebound in the stock market today indicates that buyers are returning after a sharp drawdown, but the risk environment has not normalised. Oil above $100 and the rupee at record lows are not benign backdrops.

For investors, the key takeaway is that the market is attempting to stabilise with leadership from IT and autos, while banks provide base support. However, portfolios remain exposed to external shocks through crude, currency, and global rates. Position sizing and sector balance matter more in this phase than headline index moves.

Near-term triggers to track

The immediate trigger is the US Federal Reserve policy decision and, more importantly, its communication on inflation risks linked to energy and geopolitics. The response in US yields and the dollar will matter for India via FII flows and currency stability.

On the domestic side, traders will monitor the rupee, oil-linked inflation expectations, and any official steps on fuel supply management as disruptions persist. Corporate updates around capital raising and large transactions, including the Jio IPO chatter, could also keep stock-specific action active.

Market view for the next session

Near-term direction is likely to remain headline-driven, with volatility linked to crude and the Fed outcome. If oil continues to stay elevated and the rupee remains under pressure, defensives and exporters could see renewed interest even as cyclicals attempt to extend the rebound.

For Thursday, support for the Nifty remains near the recent breakout zone, while resistance is expected around the 23,800-23,900 band, where the market has shown selling interest during intraday spikes.