Indian equity markets are expected to open higher on March 6, 2025, as indicated by the GIFT Nifty trading at 22,448.50 in early morning deals. The momentum follows a sharp rebound on March 5, when the Sensex and Nifty ended their 10-day losing streak, buoyed by strong gains across sectors.
Markets Snap 10-Day Losing Streak
After a prolonged phase of selling, Indian markets staged a robust comeback on Tuesday. Investors cheered the broad-based recovery, which saw all sectoral indices closing in positive territory.
- Sensex surged 740.30 points, or 1.01%, to settle at 73,730.23.
- Nifty climbed 254.65 points, or 1.15%, finishing at 22,337.30.
The rally was powered by heavy buying in PSU banks, media, telecom, metal, and power stocks—each of these sectoral indices gained 3%. Midcap and small-cap indices also saw significant inflows, rising 2.5% each.
Top Performers and Underperformers
As market sentiment improved, a few stocks stood out with strong gains, while others lagged behind.
- Biggest Gainers: Adani Ports, Power Grid, M&M, Tata Steel, and Adani Enterprises led the charge.
- Biggest Losers: Bajaj Finance, HDFC Bank, Grasim Industries, IndusInd Bank, and Shriram Finance struggled despite the broader uptrend.
The reversal in fortunes was seen as a technical rebound, but analysts suggest that sustained buying interest will be crucial for the rally to continue.
Asian Markets Ride Wall Street’s Momentum
Asian stocks opened higher on Wednesday, mirroring Wall Street’s rally. Investor confidence was lifted after reports surfaced that the U.S. might delay auto tariffs on Mexico and Canada—an encouraging signal for global trade.
- CSI 300 Index rose 29.51 points in early trade.
- Nikkei 225 added 340.94 points, reflecting optimism in Japanese markets.
- Hang Seng Index gained 477.38 points, signaling renewed interest in Chinese equities.
Meanwhile, the South Korean won strengthened 2% against the U.S. dollar, recovering slightly after a steep 12% drop last year—the biggest annual decline in 16 years. The currency had been under pressure due to prolonged political uncertainty.
Wall Street Rallies on Trade Policy Relief
U.S. markets posted solid gains on Wednesday as investors welcomed signs of easing trade tensions. Reports that the Biden administration could postpone auto tariffs on Canada and Mexico for a month provided a boost to sentiment.
- Dow Jones jumped 485.60 points, or 1.14%, closing at 43,006.59.
- S&P 500 climbed 64.48 points, or 1.12%, to settle at 5,842.63.
- Nasdaq Composite led the rally, advancing 267.57 points, or 1.46%, to 18,552.73.
Trading volume across U.S. exchanges stood at 15.50 billion shares, slightly below the 20-day average of 15.97 billion. Market watchers noted that while the rally was encouraging, uncertainty over future trade policies and economic data releases could influence sentiment in the coming weeks.
What’s Next for Indian Markets?
As Indian markets prepare for the day’s session, analysts will be closely watching:
- GIFT Nifty trends, which suggest a positive opening.
- Global cues, especially from Asian and U.S. markets.
- Sectoral performance, with PSU banks and metals in focus.
- Institutional flows, which could dictate near-term market direction.
While the bounce-back on March 5 was significant, market stability will depend on sustained buying, earnings performance, and global macroeconomic trends.