After opening day on a positive note, Indian benchmark indices continued their upward march, building on the momentum throughout the session to end the day on a strong note.

Benchmark Indian equity indices extended the rally to the fifth straight trading session, and in the process recorded the best weekly gain in more than 4 years.

At the closing bell, the BSE Sensex  closed Higher by 55 points (up 0.7%)

Meanwhile, the NSE Nifty closed points 160 Higher (up 0.7%)

ONGC, NTPC, and BPCL are among the top gainers today

M&M, Tata Steel, and Infosys on the other hand, were among the top losers today.

The GIFT Nifty was trading at  23, 395 higher by 225 points at the time of writing.

The BSE MidCap index ended 1.1% higher and the BSE SmallCap index ended 2.1% higher.

Barring metal stocks all other sectoral indices were trading positive with stocks in the energy sector and the healthcare sector witnessing the most buying.

The rupee is trading at Rs 85.9 against the US$.

Gold prices for the latest contract on MCX are trading 0.6% lower at Rs 88,140 per 10 grams.

Meanwhile, silver prices were trading 1.5% lower at Rs 97,944 per 1 kg.

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

#1 Intensity of foreign capital outflow receding

Foreign portfolio investors (FPIs) have started returning to the Indian stock market, bringing relief to the domestic market. FPIs turned net buyers in the cash segment on 18 March 2025 and 20 March 2025, purchasing Indian equities worth Rs 14.6 billion (bn) and Rs 32.4 bn, respectively.

The reduction in FPIs' short positions and increase in long positions in the futures market also indicate a positive shift in sentiment. As a result, mid and small-cap indices have seen a significant rebound.

# 2 Fed Signals Two Rate Cuts in 2025

The US Federal Reserve has held interest rates steady, but signaled two rate cuts by the end of 2025, reaffirming its December forecast.

Despite raising inflation expectations due to upcoming tariffs, the prospect of rate cuts has eased concerns about aggressive monetary tightening move is expected to weaken the dollar and reduce Treasury yields, making emerging markets like India more attractive to foreign investors. As a result, investors are betting on a 100-basis-point rate cut by the Fed in 2025.

#3 Growth picking pace

Recent macroeconomic data has boosted investor confidence in India's growth story. Retail inflation eased to a seven-month low of 3.61% in February, while industrial output growth rebounded to 5% in January. Fitch Ratings predicts a 6.5% growth rate for the Indian economy in the next financial year.

#4 Expectations of earnings revival

After three subdued quarters, expectations are high that India Inc.'s Q4FY25 earnings will stabilize and potentially rebound from Q1FY26. Earnings growth in India is likely to be 12-14% over the next 12 months, with further acceleration expected in 2027.
 

Adani Energy Solutions Lands Major 3% Deal

In the news from the power sector, Adani Energy Solutions' stock price surged 3.3% on the BSE, reaching an intraday high of Rs 842.5 per share. This significant upward movement in the stock's value was triggered by the company's recent win of a substantial order worth Rs 28 billion (bn) in Gujarat.

Adani Energy has secured a major contract to upgrade Gujarat's electrical infrastructure. The project involves overhauling the Navinal (Mundra) substation with two 765/400kV transformers.

Adani Energy won the project under the Tariff Based Competitive Bidding mechanism, with the project SPV transferred on 20 March 2025. This win boosts Adani Energy's order book to Rs 575.6 bn, marking its sixth order this fiscal year.

Over the past year, Adani Energy's stock has underperformed the broader market, declining by 19% while the benchmark Sensex index rose by 5% during the same period.

Hexaware falls 16% from peak

Moving on to the news from IT sector, Hexaware Technologies' share price plummeted to a new low of Rs 715 on the BSE on Friday, as it declined by 2% during intraday trading. The IT sector witnessed choppy trade on Friday, with Hexaware Technologies being one of the notable decliners.

Hexaware Tech's stock price has breached its previous low of Rs 720, recorded on 17 March 2025, and is currently trading at its lowest level since its listing on 19 February 2025. Notably, the stock has corrected by 16% from its all-time high of Rs 850, achieved on 27 February 2025.

The recent decline in Hexaware's stock price can be attributed to two key factors: a higher-than-estimated base in Q3, which was the company's first quarterly disclosure, and a 70-basis point impact due to furloughs.

However, on a year-over-year (Y-o-Y) basis, the company's growth remained robust, with an impressive 18.5% increase.

Hexaware's profits got a boost from lower employee compensation costs and contributions from recent acquisitions (2% year-over-year). However, slower growth rates had a negative impact on margins, resulting in a 0.5% shortfall in Ebitda margins.

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