Nifty, Sensex Surge for Fifth Consecutive Session Led by Auto and Financial Stocks
Introduction:
Benchmark indices Nifty 50 and Sensex extended their winning streak to the fifth consecutive session by mid-trade on March 21, driven by robust buying in automobile and financial stocks. Despite pressure from information technology stocks, markets held their bullish tone as the Nifty 50 surpassed the 23,300-mark, reflecting strong investor sentiment. Foreign institutional investors (FIIs), who were net sellers for the past month, have turned net buyers in two of the last three sessions. Positive technical indicators and sectoral momentum continue to support the broader market rally, while stock-specific developments, like Bajaj Finance’s surge, further lifted sentiment.
Sensex Market Overview: Mid-Session Gains and Technical Breakouts
At 1:31 PM, the Sensex surged 598.30 points (0.78%) to 76,946.36, while the Nifty climbed 178.55 points (0.77%) to 23,369.20. Market breadth remained strongly positive with 2,523 stocks advancing, 1,016 declining, and 109 unchanged.
Nifty Breaks 50-Day EMA, Targets New Highs
Technical indicators point towards sustained bullish momentum. The Nifty 50 recently breached its 50-day Exponential Moving Average (EMA), triggering a bullish sentiment. According to Sameet Chavan, Head Research at Angel One, the next resistance lies around the 89 EMA at 23,300–23,400, followed by a key resistance at the previous high of 23,800. The breakout is expected to attract more short-term traders and institutional buyers.
Sectoral Performance: Realty, Auto, and Energy Lead Gains
Nifty Realty Outperforms
Among sectoral indices, Nifty Realty was the top performer, rising over 2% amid optimism in the real estate space, supported by robust housing demand and strong quarterly updates.
Other Sectoral Winners
Other major sectoral indices trading in the green include:
- Nifty Auto: Up nearly 1.5%, supported by strong sales and industry growth expectations.
- Nifty Energy
- Nifty Infra
- Nifty PSU Bank
- Nifty Pharma
- Nifty Media
Each of these sectors posted gains between 1-2%, indicating broad-based market strength.
RELATED NEWS – Sensex
RELATED NEWS – NIFTY
Stock in Focus: Bajaj Finance Soars to Record High
Bajaj Finance shares surged to a record high after the announcement that Rajeev Jain, Managing Director of Bajaj Finance, has been appointed to the Bajaj Finserv board in an executive capacity. While he will continue his current role at Bajaj Finance, Jain will also contribute to the group’s newer business ventures, including healthcare and insurance transition strategies.
Bajaj Finserv, which holds 54% stake in Bajaj Finance, is expected to benefit from this strategic alignment, enhancing investor confidence. Bajaj Finance’s valuation stood at approximately Rs 3.25 lakh crore, reflecting its dominant position in the lending market.
IT Stocks Drag as Accenture Lowers Revenue Guidance
Accenture Results Impact Indian IT Stocks
The Nifty IT index witnessed selling pressure after Accenture’s earnings report indicated lower-than-expected revenue guidance. Accenture is considered a bellwether for Indian IT companies, and its weak outlook has raised concerns about global demand for IT services.
Indian IT giants like Infosys, TCS, and Wipro saw intraday losses, reflecting fears over potential margin pressure and slower deal wins. Although some IT stocks recovered partially by mid-trade, the outlook remains cautious in the short term.
Foreign Institutional Investors (FIIs) Turn Net Buyers Again
Sentiment Shift Among FIIs
One of the key drivers behind the recent market rally is the change in FII behavior. After a prolonged period of net selling, FIIs have returned as net buyers in two of the past three sessions, suggesting renewed confidence in Indian equities amid stable macroeconomic indicators and improving global liquidity conditions.
Analysts expect sustained FII inflows if the domestic economy maintains its current growth trajectory, especially with earnings season around the corner.
Conclusion :
The continued rise in Nifty and Sensex for the fifth consecutive session highlights strong investor confidence in the Indian equity markets. Backed by auto, financial, and real estate sectors, the rally has overcome pressure from the IT segment. Positive technical indicators and FII inflows further support the bullish sentiment. While short-term consolidation cannot be ruled out due to global uncertainties, the market outlook remains optimistic. Investors are advised to remain cautious yet selectively bullish, focusing on high-performing sectors and stock-specific opportunities that align with macro and technical trends.
Frequently Asked Questions (FAQs)
Q1. What is driving the Nifty and Sensex rally?
The rally is supported by strong buying in auto, financial, and realty stocks, along with improved FII sentiment and positive technical indicators.
Q2. Why are IT stocks under pressure today?
IT stocks declined due to Accenture’s weak revenue guidance, signaling potential demand slowdown and margin concerns for Indian IT companies.
Q3. What is the next resistance level for Nifty?
According to experts, Nifty’s immediate hurdle is between 23,300–23,400, followed by the previous high at 23,800.
Q4. What led to Bajaj Finance’s sharp rally?
The stock hit a record high following the appointment of its MD Rajeev Jain to Bajaj Finserv’s board, signaling strong leadership and future growth plans.
Q5. Are FIIs buying Indian stocks again?
Yes, FIIs have turned net buyers in two out of the last three sessions, reversing the earlier selling trend.
