Indian Stock Market Today: Sensex, Nifty Surge in Mid-Session as IT Stocks Lead the Rally – March 5, 2025

Date: 05-mar-2025

Indian Stock Markets Rebound: Sensex, Nifty Surge as IT Stocks Lead the Recovery

Mumbai, March 5, 2025, 1:02 PM IST – After weeks of continuous decline, the Indian stock markets witnessed a strong recovery on Wednesday, with benchmark indices surging in early afternoon trade. The BSE Sensex climbed 0.58% to 73,419.22, while the Nifty 50 advanced 0.65% to 22,226.9. The market sentiment turned positive, led by a sharp rebound in the Information Technology (IT) sector, which had suffered significant losses in the past few sessions.

Market Performance at 1:02 PM

• Sensex: +0.58% (73,419.22)
• Nifty 50: +0.65% (22,226.9)
• Nifty IT Index: +2% after falling 8.4% in the last ten sessions
• Mid-cap Index: +1.5%
• Small-cap Index: +1.7%

Key Drivers of the Rally

IT Sector Comeback

The IT sector emerged as the biggest gainer, bouncing back after nearly two weeks of decline. Major IT stocks that contributed to the rally include:

• Coforge: +9.7% after announcing a 13-year, $1.56 billion contract with U.S.-based Sabre Corp.
• Persistent Systems: +4.6%, benefiting from a bullish report by JP Morgan.
• Infosys: +1.5%, following positive earnings growth projections from analysts.

Short-Covering by Investors

The recent sharp decline in the market had led to excessive short positions. As markets showed signs of stabilization, short-covering by traders and institutional investors fueled the recovery.

Weaker U.S. Dollar & Falling Bond Yields

• The U.S. dollar index declined to its lowest level since December 2024, reducing pressure on emerging markets like India.
• U.S. Treasury yields also fell, improving investor sentiment in global equities.

Positive Domestic Sentiment

• Broader market indices, such as mid-caps (+1.5%) and small-caps (+1.7%), showed strong buying interest.
• Analysts believe the correction in recent sessions made valuations attractive, prompting investors to return to equities.

Global Concerns & Market Risks

Despite today’s positive momentum, analysts advise caution as global uncertainties persist. A key factor impacting global markets is the U.S. trade policy shift, with former U.S. President Donald Trump announcing reciprocal tariffs set to take effect from April 2, 2025. This has raised concerns about potential disruptions in international trade and economic stability.

Outlook for the Coming Days

Market experts suggest that if the IT and banking sectors continue to show strength, the Sensex and Nifty could witness further gains in the short term. However, volatility is expected due to external global factors, including U.S. economic policies and crude oil price fluctuations.

Investors are advised to watch key economic indicators and global trends before making trading decisions in the coming weeks.

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