Indian stock market rallies as financial and pharma stocks surge

On March 17, 2025, the Indian stock market displayed a robust performance, with both the Sensex and Nifty ending higher due to increased buying interest in financial and pharmaceutical sectors, among others. The Sensex initially opened lower at 73,796 but quickly rebounded, climbing to an intraday high of 74,376 before settling at 74,170, marking a gain of 341 points. Similarly, the Nifty index experienced a positive turnaround, opening with an initial loss of 44 points at 22,353 before recovering and ending the day at 22,509, reflecting a 112-point increase or 0.5 percent. Key contributors to this upswing included stocks such as Bajaj Finserv, Adani Ports, and Mahindra & Mahindra, all seeing notable gains. In contrast, several companies such as ITC and Nestle India faced declines. In the broader market context, the BSE MidCap index rose by 0.8 percent while the SmallCap index held steady. This surge transpired in a generally cautious trading atmosphere, further complicated by profit-booking actions observed towards the end of the trading session. Analysts like Sundar Kewat from Ashika Institutional Equity noted that after reaching the day’s high, a profit booking triggered a decline of 100 points, indicating a careful approach among investors. Enthusiasm was amplified by positive global signals, notably following China's strategic action plan aimed at stimulating domestic consumption alongside favorable industrial production data and retail sales growth reported from the country. Furthermore, the Indian rupee appreciated by 0.27 percent against the US dollar, supported by a weaker dollar index and decreasing outflows from secondary capital markets. Jateen Trivedi of LKP Securities highlighted that the dollar's weakness bolstered the rupee and that market observers were closely monitoring impending US economic data releases.