Indian stock markets made a sharp recovery on March 5 to break a 10-day losing streak, with investors buying down-trodden shares and drawing encouragement from the performance of the Asian market.
The Sensex gained 564.80 points (0.77%) to 73,554.73 during early trade, and the Nifty gained 179.5 points (0.81%) to 22,265.15. The top gainers were Tata Steel, Mahindra & Mahindra, HCL Technologies, Tech Mahindra, Adani Ports, Tata Motors, Power Grid, NTPC
Key Factors Driving the Market Rally
- US Signals Possible Tariff Relief
A major boost to market sentiment came after US Commerce Secretary Howard Lutnick indicated that the Trump administration may ease some tariffs that had triggered a global stock market selloff. He hinted that a reduction in tariffs on Mexican and Canadian goods under NAFTA could be announced soon, possibly as early as Wednesday. - Strong Performance in Asian Markets
Positive trends in Asian markets also supported the rally. Hong Kong’s Hang Seng Index jumped nearly 2% as China pledged new stimulus measures to counter trade tensions with the US. Meanwhile, Japan’s Nikkei also traded higher, boosting investor confidence in global equities.
Outlook for Indian Markets
Market analysts are of the view that more trade policy certainty in the US and continued vigor in global markets will be essential to sustain the recovery. However, investors will watch closely domestic economic indicators, corporate earnings, and global geopolitics for future market signals.
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Source: Moneycontrol.
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