Despite global weakness, Sensex Nifty jumps after trading weak for 19 straight sessions

Mumbai (Maharashtra) [India], March 5 (ANI): The stock markets on Wednesday witnessed strong buying sentiments in the middle of the trading session after trading weak for 19 straight sessions.
At the time of writing this report, the BSE Sensex was up over 835 points at 73,822.28 at 12:16 PM on wednesday. The Nifty at the National Stock Exchange (NSE) was trading at 22,362.65, up over 285 points.
Among the gainers, at NSE stocks of Adani Ports, Power Grid, M&M, Adani Enterprises, and NTPC are leading, while Bajaj Finance, HDFC Bank, Grasim, IndusInd Bank and Shriram Finance are the major losers.
Both the benchmarks are witnessing over a one percent uptick in the mid hours of the trading.
According to the market analysts, this rally could be a relief rally, as the Indian market is rebounding after 19 consecutive sessions in the red. During this period, there was a significant buildup of short positions, particularly by Foreign Institutional Investors (FIIs), who may now be covering some of their positions after a prolonged downturn, as per the analysts.
"The market seems to have formed a near-term bottom after correcting around 20% from its peak, with Nifty facing resistance at 22,750-22,800 levels . Once this level is decisively crossed, we could see a strong upside. Today's sharp rally, with the Sensex surging over 800 points and Nifty approaching 22,400, reflects growing investor confidence driven by easing FPI selling and record domestic SIP inflows," said Narinder Wadhwa, Managing Director & CEO of SKI Capital Services Ltd., observing today's market.
"After yesterday's correction, our indices were trading around the long-term fair value matrix or slightly below, making this an attractive zone for long-term investors. Support at 23,800 has held firm, and with improving rural consumption and the benefits of the recent RBI rate cut, the stage is set for a sustained market uptrend. We see opportunities particularly in consumption-driven sectors and private banking," he further added.
Akshay Chinchalkar, Head of Research, Axis Securities, attributed the recovery to the ongoing negotiations of US trade tariffs between the US and Canada.
He added, "The news that US and Canadian officials are discussing some rollbacks on tariffs is helping fan the risk-on mood across global markets. The fact that China has maintained its 2025 growth target at around 5% is a sign that officials are prepping to announce more stimulus should the need arise. All this evidence, along with the fact that sentiment and breadth are so depressed, is creating the perfect situation for a relief rally to begin."
The Bank Nifty rose to above 300 points at 48,547.70 and the Nifty Midcap also witnessed an uptick of about 312 points at 11,146.25.
"Despite global weakness, the BSE Sensex opened on a positive note at 73,005. From its intraday low of 72,894, it surged to an intraday high of 73,848 (as of now). After a consecutive losing streak on Dalal Street, the current rally appears to be a pullback, likely to test resistance levels at 74,700 and 75,000, respectively. The market rally was largely driven by an indication from US Commerce Secretary that the Trump administration might consider relaxing certain tariffs," said Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity, reacting to the market's movement.
"After falling for days, the Sensex and Nifty indices were trading positively, indicating a pullback rally after the continued decline. This increase is likely due to the rise in buying at low prices," said Palak Devadiga, research analyst, StoxBox.
She added that the reciprocal tariffs by Trump would still impact the markets. (ANI)