Markets Rally Following 10-Day Losing Streak | Know Key Reasons

The Indian stock market cheered up with significant gains, breaking the 10-day losing streak on March 5. This can be attributed to heightened buying at lower levels and positivity in Asian markets. Sensex was up by 1,29% at 73,933.80, while the Nifty gained by 1.41% at 22,394.90. Shares of Tata Steel, Mahindra & Mahindra, HCL Technologies, Tech Mahindra, Adani Ports, Tata Motors, Power Grid, NTPC, Infosys, Tata Consultancy Services, and Bharti Airtel were the top gainers.

Key factors behind the market’s rally

1. Tariff relief from the U.S.

Investors remained optimistic when the U.S. Commerce Secretary Howard Lutnick suggested possible ease in tariffs . Lutnick hinted that a streamlined approach towards tariff reduction, particularly on Mexican and Canadian imports, could be announced on March 5.

2. Asian markets rally

Gains in the Asian markets seeped into the domestic equities, further uplifting investor sentiments. The Hang Seng Index soared by 2% after Beijing decided to introduce fresh stimulus to wean off trade tension with the U.S. Japan’s Nikkei traded in the green.

3. Recovery in broader markets

Nifty Midcap 100 and Smallcap 100 indices were up by 2%, rebounding from previous day’s close. As per analysts, oversold conditions have made the valuations attractive, which in turn led to strong buying interest. Rajesh Bhosale, an analyst at Angel One said, “The recent sell-off breached multiple support levels, but the market’s oversold nature presented an opportunity for a short-term rebound.” He also cautioned that uncertainty around global trade policies will act as a stumbling block.

4. Heightened buying in Blue-chip stocks

Large-cap stocks including Tata Steel, Adani Ports, and TCS witnessed strong interest from buyers, lifting the shares by 4%. Several experts noted that recent corrections in the equity market prompted investors to buy domestic shares.

5. Opportunity for Indian exporters

Levying higher U.S. tariffs on China, Mexico, and Canada is expected to create new opportunities for Indian exporters. As per experts, sectors including agriculture, engineering, textiles, machine tools, chemicals, and leather could witness increased shipments to the US. S C Ralhan, President-designate of the Federation of Indian Export Organisations said, “Indian exporters stand to gain as supply chain realignments take place.”