After opening day on a positive note, Indian benchmark indices gained as the session progressed and ended the day on firm footing.

Benchmark equity indices BSE Sensex and NSE Nifty50 continued their upward movement for the second consecutive session and settled with gains of over 1% each on Tuesday.

At the closing bell, the BSE Sensex  closed Higher by 1,131 points (up 1.5%)

Meanwhile, the NSE Nifty closed 325 points Higher (up 1.5%)

ICICI Bank, M&M, Kotak Mahindra among the top gainers today

Bajaj Finserv, Tech Mahindra, and Bharti  Airtel on the other hand, were among the top losers today.

The GIFT Nifty was trading at  22,893 higher by 285 points at the time of writing.

The BSE MidCap index ended 2.1% higher and the BSE SmallCap index ended 2.7% higher.

Sectoral indices were trading positive with stocks in power and auto witnessing selling pressure.

The rupee is trading at Rs 86.6 against the US$.

Gold prices for the latest contract on MCX are trading 0.5% higher at Rs 88,492 per 10 grams.

Meanwhile, silver prices were trading 0.8% higher at Rs 1,01,350 per 1 kg.

Here are the four key factors driving the market's momentum:

#1 Global risk-on sentiment

Indian stocks drew inspiration from their Asian counterparts, which rallied in tandem with a second consecutive day of gains on Wall Street. Japan's Nikkei, China's CSI 300, and the Hang Seng index rose by 1.26%, 0.28%, and 2.16%, respectively. The US market rebound was fueled by a modest 1% increase in retail sales, with the S&P 500 and Nasdaq 100 indices advancing 0.64% and 0.31%, respectively.

#2 Financials heavyweight's gain

The domestic stock market rally was driven by broad-based buying, led by heavyweight financial stocks. ICICI Bank and HDFC Bank were the top contributors to the Nifty index's gains, rising 2.83% and 1.58%, respectively. The Nifty Bank index also surged 1.45%, with Kotak Mahindra Bank among the top gainers, up 1.26%.

#3 Economic Revival

India's retail inflation eased to a seven-month low of 3.61% in February, driven by a sharp slowdown in food price inflation. This decline has sparked hopes of another repo rate cut by the central bank. Meanwhile, factory output growth surged to an eight-month high of 5.01% in January, up from 3.54% in December.

#4 The Rupee Factor

The Indian rupee strengthened to a three-week high, gaining 10 paise to 86.71 against the US dollar in early trade on Tuesday. A weaker US dollar index, down 4.5% year-to-date, also supported the rupee's rise. The strengthening rupee and softer dollar are expected to boost the Indian stock market by reducing foreign capital outflows and easing inflationary pressures.
 

Ola Electric Bounces Back from Downturn

In the news from auto sector, Ola Electric's stock price witnessed a dramatic reversal of fortunes in today's trading session, skyrocketing by over 16% from its previously recorded all-time low.

In a remarkable reversal of fortunes, Ola Electric's stock price skyrocketed by 16.1% to reach an intraday high of Rs 53.8 per share. This sudden surge in value was a significant departure from the company's recent record low. The stock was trading at Rs 53.5, still boasting an impressive 13.45% gain from its previous closing price.

In a notable downturn, Ola Electric's stock price plummeted 7.2% on 17 March 2025, breaching the psychologically significant Rs 50-mark for the first time.

In a significant development, a petition was filed to initiate the Corporate Insolvency Resolution Process (CIRP) against Ola Electric Technologies Private Limited, a subsidiary of Ola Electric.

Ola Electric faced a double whammy last week. Apart from the insolvency news, transport authorities conducted raids across its showrooms, shutting them down and seizing vehicles due to the absence of trade certificates. These certificates are mandatory for displaying, selling, offering test rides, and transporting unregistered two-wheelers.

Ola Electric's dealership network is facing regulatory issues, with only around 100 of its 3,400 showrooms possessing the required basic certification mandated by the Motor Vehicles Act.

Sugar Stocks Rise on Low Production

Moving on to the news from FMCG sector, Sugar stocks witnessed a significant rally on Tuesday, with shares of prominent sugar companies surging up to 20% on the BSE during intraday trading.

This sudden spike in sugar stocks was triggered by a report highlighting a substantial decline in sugar production in the country's top three sugar-producing states: Maharashtra, Karnataka, and Uttar Pradesh.

The drop in sugar production is attributed to various factors, including unfavourable weather conditions, crop diseases, and other agricultural challenges. This reduction in sugar output is expected to lead to a shortage in sugar supplies.

India's sugar production has taken a hit, plummeting 16.1% to 23.7 million tonnes in the current 2024-25 season, marking a significant decline from the previous year's output.

Maharashtra, the country's top sugar-producing state, has witnessed a substantial decline in sugar production. The state's sugar output stood at 7.86 million tonnes, down significantly from 10.04 million tonnes recorded during the same period last year.

Sugar stocks witnessed a significant rally, with Magadh Sugar & Energy surging 14% to Rs 585. Avadh Sugar & Energy rose 10% to Rs 428.9, while Dalmia Bharat Sugar and Industries gained 9% to Rs 344.5. Other notable gainers included Mawana Sugars, Dwarikesh Sugar Industries, and Shree Renuka Sugars. These gains were driven by a decline in sugar production in key producing states.

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