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Sensex rises 900 points in March. Experts recommend large-cap and banking stocks, but advise caution on mid-caps.
Sensex shows signs of slight recovery with a gain of 900 in March.
Indian Stock Market: The Indian equity market experienced slight relief in March, with the Sensex rising almost 900 points to surpass the 74,000 mark. As the recovery emerged, market experts are considering large-cap and banking and financial services stocks for lump sum investments.
Vishal Dhawan, CEO of Plan Ahead Wealth Advisors, a Mumbai-based wealth management firm, informed the Economic Times that large-cap stocks present an investment opportunity. However, he advised caution regarding mid-cap and small-cap stocks, citing high valuations despite anticipated slower economic growth and reduced earnings.
Dhawan highlighted that a broad market rally was driven by metals, oil and gas, and PSU banks. A weakening dollar index supported metals and oil, while the Reserve Bank of India’s announcement of liquidity measures aided banks facing liquidity constraints.
“The rally reflects a broad-based recovery, with public sector banks among the top performers following the RBI’s announcement. Future market momentum will depend on certainty in the global trade environment and a recovery in urban consumption leading to overall GDP growth,” Dhawan added.
Sensex, Nifty Today
Equity benchmark indices opened with significant losses in Tuesday’s morning session, reflecting negative cues from global markets.
After a 371-point gap-down opening, the BSE Sensex fell to 73,668 but subsequently recovered somewhat. At 9:55 AM, the Sensex was down by 300 points, or 0.4%, at 73,800. Similarly, the NSE Nifty 50 dropped to 22,315 and was down 80 points, or 0.4%, at 22,380.
Among individual stocks, IndusInd Bank plummeted 20% to Rs 735 after the private lender disclosed discrepancies in its derivative portfolio. The bank estimated a Rs 1,577 crore (approximately 2.35%) impact on its net worth.
