Indian Stock Market News: March 18, 2025

SGX Nifty Update

The SGX Nifty, an early indicator of the Indian stock market’s performance, showed a positive trend in the early hours of March 18, 2025. As of 8:30 AM IST, the futures contract rose by 85 points, signaling a potentially upbeat opening for the Indian markets. Analysts attribute this upward movement to optimism surrounding global cues, steady foreign institutional inflows, and expectations of positive macroeconomic data. The SGX Nifty is closely monitored as it provides insight into market sentiment and often sets the tone for trading in India.

Market Overview

The Indian stock markets witnessed a mixed session yesterday, with benchmark indices oscillating between gains and losses before closing marginally higher. The BSE Sensex ended the day up by 112 points at 74,258, while the NSE Nifty 50 gained 38 points to close at 22,470. The market sentiment remained cautiously optimistic as investors awaited key economic data and global market cues.

The broader market indices reflected a similar pattern, with the Nifty Midcap 100 rising by 0.4% and the Nifty Smallcap 100 edging up by 0.3%. Market breadth remained positive, with more advancing stocks than decliners. Volatility, measured by the India VIX, remained stable, indicating a lack of panic selling despite global uncertainties.

Sectoral Performance

The trading session saw a mixed performance across various sectors. Banking and financial services led the gains, with the Nifty Bank index rising by 0.7%, supported by robust performance from private sector banks. Public sector banks also contributed to the rally as expectations of further privatization fueled investor interest.

Meanwhile, the IT sector lagged behind, shedding 0.5%, as concerns over global economic growth weighed on technology stocks. The rupee’s slight appreciation against the US dollar also contributed to the IT sector’s underperformance, as a stronger rupee can impact export-driven revenues.

Pharma stocks saw renewed buying interest, rising 1.2%, driven by positive regulatory approvals and strong quarterly results from leading companies. The healthcare sector, in general, witnessed a surge in investor interest as the government announced new initiatives to boost domestic manufacturing of essential medicines.

The FMCG sector also posted modest gains, reflecting resilient consumer demand despite inflationary pressures. Consumer durables stocks climbed 0.6%, buoyed by expectations of strong demand ahead of the summer season. The auto sector, however, remained flat, with mixed cues from global markets and concerns over rising input costs.

Top Gainers and Losers

Among the Nifty 50 constituents, some stocks stood out for their remarkable performance:

  • Top Gainers:
    • HDFC Bank surged 2.5% following news of increased foreign institutional investment.
    • Sun Pharma rose 2.2% after receiving regulatory approval for a new drug.
    • Reliance Industries gained 1.8%, driven by strong performance in its telecom and retail divisions.
    • ICICI Bank added 1.7% after reporting robust loan growth and stable asset quality.
    • Larsen & Toubro rose 1.5% on securing a large infrastructure project in the Middle East.
  • Top Losers:
    • Infosys dropped 1.5% amid concerns over global IT spending.
    • Tata Steel slipped 1.3% as weak commodity prices weighed on investor sentiment.
    • Maruti Suzuki declined 1.1% due to concerns over rising input costs.
    • Bajaj Auto fell 1.0% after reporting a drop in monthly sales.
    • Wipro dipped 0.9%, reflecting broader weakness in the IT sector.

Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs)

FIIs were net buyers for the third consecutive session, injecting over ₹1,200 crore into Indian equities. Market analysts suggest that this trend reflects growing confidence in India as a favorable investment destination amid global uncertainties. FIIs have been focusing on sectors like banking, infrastructure, and consumer goods, viewing them as long-term growth drivers.

On the other hand, DIIs booked profits, with net outflows of around ₹600 crore. Mutual funds saw some redemption pressure as investors took advantage of recent market gains to rebalance their portfolios.

Macro-Economic Indicators

India’s Wholesale Price Index (WPI) data for February was released yesterday, showing a year-on-year increase of 2.8%, slightly below market expectations. The lower-than-expected rise eased fears of inflationary pressures, contributing to the positive market sentiment.

Additionally, the Reserve Bank of India (RBI) announced that India’s forex reserves increased by $3.5 billion last week, reaching a new high of $648 billion. This boost further solidified confidence in the country’s economic stability. Analysts believe that strong reserves provide a cushion against external shocks and reinforce the country’s ability to manage its currency.

Industrial production data also came in better than expected, rising 5.2% year-on-year, driven by growth in manufacturing and mining activities. The index of industrial production (IIP) numbers indicated a recovery in domestic demand, bolstering the outlook for economic growth.

Corporate Developments

Several corporate announcements made headlines yesterday:

  • Adani Group: Adani Ports announced a new joint venture with a European shipping giant, aiming to expand its operations in the Middle East. The move is expected to strengthen India’s maritime trade and create new job opportunities.
  • Tata Motors: The company revealed plans to invest ₹10,000 crore in electric vehicle (EV) infrastructure over the next five years. This investment aligns with India’s push toward sustainable mobility.
  • Zomato: The food delivery giant reported a 15% increase in quarterly revenues, attributed to growing demand in tier-2 and tier-3 cities.
  • Bharti Airtel: Announced a partnership with a global technology firm to enhance its 5G network capabilities, aiming to improve connectivity in rural areas.
  • Hindustan Unilever: Launched a new range of eco-friendly products, reflecting growing consumer awareness around sustainability.

Global Cues

Global markets remained mixed, with Wall Street closing slightly lower due to concerns over the Federal Reserve’s interest rate policy. European markets posted modest gains, while Asian markets showed resilience, buoyed by positive economic data from China.

Oil prices edged higher, crossing the $85 per barrel mark, driven by geopolitical tensions and supply constraints. Gold prices also rose, reflecting increased demand for safe-haven assets amid market uncertainties.

Outlook for Today

Market participants are expected to closely monitor the release of India’s retail inflation data later today, which could influence the RBI’s future policy stance. Analysts predict continued volatility, with global cues and institutional flows playing a crucial role in shaping market trends.

The SGX Nifty’s positive opening hints at a potentially optimistic start, though caution prevails as investors await fresh economic data and global market developments. Earnings season is also around the corner, and traders are positioning themselves accordingly, with a focus on sectors poised to benefit from India’s long-term growth story.