Sensex Soars 1131 Points: Biggest Stock Market Surge in 2 Months

Share Market Today

Biggest Rise in 2 Months: Sensex Soars by 1,131 Points, ₹7 Lakh Crore Wealth Added to Investors

Share Market Today: BSE Market Cap Crosses ₹400 Lakh Crore Milestone

Indian stock markets experienced a remarkable surge on 18th March, registering the biggest jump in the last two months.

Both the BSE Sensex and the NSE Nifty index notched impressive gains, hitting their highest levels in one month.

With a dramatic rise of 1,131 points in the Sensex, investors saw a significant increase in wealth—over ₹7 lakh crore was added to the total market capitalization of Indian companies today.

The positive momentum in the market was broad-based, supported by strong gains across various sectors.

The rally was fueled by optimism in the auto, banking, and metal sectors, with buying interest spreading to midcap and smallcap stocks as well.

This widespread market strength helped propel the Sensex and Nifty to their highest points in a month, signaling a healthy recovery after a period of market volatility.

Sensex and Nifty Reach One-Month Highs

By the close of trading on 18th March, the BSE Sensex had surged by an impressive 1,131.30 points, or 1.53%, to finish at 75,301.26 points.

At the same time, the 50-share Nifty index gained 325.55 points, or 1.45%, closing at 22,834.30. The rally in both indices marked the largest rise for Sensex and Nifty in the past two months, as investor sentiment turned more positive.

Today’s performance came after a series of weaker trading days, during which both indices had faced pressure from global concerns and domestic uncertainties.

The market’s resilience and ability to rebound strongly highlight the underlying strength of India’s equity market, which continues to attract investor confidence despite global economic challenges.

Investor Wealth Surges by ₹7.22 Lakh Crore

One of the most significant outcomes of today’s rally was the surge in investor wealth. As the markets rose, the total market capitalization of all companies listed on the Bombay Stock Exchange (BSE) crossed a major milestone, reaching ₹400.02 lakh crore at the close of trading on 18th March.

This was up from ₹392.80 lakh crore on 17th March, marking a substantial increase of ₹7.22 lakh crore in just a single trading session.

This rise in market capitalization translates into an equivalent increase in the wealth of Indian investors, who saw their portfolios grow significantly today.

The sharp upward movement in stock prices, across both large-cap and midcap stocks, boosted the overall market sentiment, contributing to this remarkable surge in wealth.

Sectoral Performance: Broad-Based Growth Across the Board

The rally was not limited to just a few stocks or sectors but was seen across the entire market. All major sectors participated in the upward movement, reflecting a broad-based recovery.

• Auto Sector: Among the top-performing sectors, the auto sector stood out with strong gains. Major auto stocks saw substantial increases in their share prices, supported by optimism regarding domestic demand recovery and expected economic growth. Tata Motors and Mahindra & Mahindra were among the biggest beneficiaries of the rally, with their stocks climbing by more than 2.5% each.
• Banking Sector: The banking sector also had a stellar performance, buoyed by increased buying activity in banking stocks. Investors were encouraged by improving credit growth and expectations of strong financial results in the coming quarters. ICICI Bank, one of the largest private sector lenders in India, was a major contributor to the market rally, posting gains of more than 3%.
• Metal Sector: The metal sector saw a significant rise in stock prices, driven by improving global metal prices and growing demand. Investors were encouraged by the strong outlook for commodities, especially with signs of improving global economic growth, which bodes well for the sector’s performance.

The broader indices, such as the BSE Midcap Index and Smallcap Index, also registered strong growth, with the former rising by 2.10% and the latter gaining 2.73%.

These gains reflect investor optimism not just in large-cap stocks but also in smaller companies, indicating a more widespread bullish sentiment across the entire market.

Key Stock Performances: Top Gainers and Decliners

Within the BSE Sensex, 26 out of the 30 constituent stocks ended the day in the green, contributing to the index’s strong overall performance. Among the top performers were:

• Zomato: The online food delivery company saw a sharp 7.11% rise in its stock price, making it the top gainer of the day. Zomato’s performance was boosted by positive news regarding its business strategy and market outlook.
• ICICI Bank: The private-sector lender rose by 3.25%, supported by the overall positive sentiment in the banking sector. The bank’s strong performance was aided by expectations of continued growth in retail lending and improving profitability.
• Mahindra & Mahindra (M&M): The auto and farm equipment manufacturer gained 2.92%, reflecting strong demand for its products and positive sentiment in the auto sector.
• Tata Motors: Another strong performer in the auto sector, Tata Motors saw its stock price increase by 2.71%, supported by the recovery in demand for both domestic and international markets.
• Larsen & Toubro (L&T): The engineering and construction giant gained 2.62%, driven by optimism regarding infrastructure spending and strong growth prospects in the coming quarters.

On the other hand, just four Sensex stocks ended the day in the red. The top decliner was Bajaj Finserv, which fell by 1.33%, while Bharti Airtel, Tech Mahindra, and Reliance Industries also saw minor declines ranging from 0.13% to 0.69%.

Market Breadth: Strong Positive Sentiment

The market breadth on the Bombay Stock Exchange (BSE) was overwhelmingly positive, with a large majority of stocks ending on a high note.

Out of the 4,159 stocks that were traded on the exchange, 2,825 stocks closed with gains, while only 1,210 stocks posted losses. Additionally, 124 stocks ended flat with no significant change in their prices.

In a sign of robust market performance, 65 stocks reached new 52-week highs during the day, further confirming the bullish sentiment.

However, some caution was noted as 294 stocks touched their 52-week lows, suggesting there is still some volatility and divergence in market conditions.

Eyes on the Federal Reserve’s FOMC Meeting

As the Indian stock market celebrates today’s gains, investors are now looking ahead to global cues that could influence market direction.

The Federal Reserve’s Federal Open Market Committee (FOMC) meeting, scheduled for Tuesday and Wednesday, will be a crucial event for markets worldwide.

Traders and investors will be keen to hear any indications regarding future interest rate hikes or changes to the US monetary policy, as this could have a ripple effect on global markets, including India.

The outcome of this meeting will likely impact global liquidity conditions and investor sentiment, especially in the wake of today’s positive performance in Indian markets.