The Indian stock market witnessed a strong rally on March 18, 2025, with the Sensex surging 1,131 points to reclaim the 75,000 mark, while the Nifty 50 climbed 326 points to close at 22,834. This rally was fueled by positive global cues, strong domestic economic fundamentals, sector-specific gains, and renewed investor confidence. Strong buying interest in midcap and smallcap stocks further amplified the gains, with the BSE MidCap rising 2.10% and the BSE SmallCap soaring 2.73%.
One of the major drivers behind today’s rally was positive global market trends, as strong performance in Asian markets lifted investor sentiment in India. Additionally, China’s fresh stimulus measures eased concerns over a global slowdown, encouraging more investment in emerging markets. Domestically, India’s GDP growth at 6.2% and controlled inflation at 3.61% provided a stable economic foundation. The Indian rupee strengthened by 0.26% to 86.57 against the U.S. dollar, further boosting confidence, particularly in import-dependent sectors.
Sector-wise, the financial, metal, and auto segments led the gains, with stocks like ICICI Bank, Larsen & Toubro, and Tata Motors posting strong performances. The Nifty Pharma and Healthcare indices also outperformed, benefitting from increased demand and structural growth trends in the sector. A shift in investor sentiment following the market correction in November 2024 spurred fresh buying, as many traders believed the market had reached its lowest point. On the BSE, 2,771 stocks advanced, while only 1,207 declined, indicating widespread optimism and strong participation from investors.
Institutional buying played a significant role in the rally. Domestic Institutional Investors (DII) recorded a net purchase of ₹2,028.15 crores, while Foreign Institutional Investors (FII/FPI) added ₹1,462.96 crores in net inflows. This strong liquidity support reinforced market momentum and helped indices close near their intraday highs.