Indian markets ended with healthy gains on March 16, tracking positive global cues as hopes of an end of the ongoing Russia-Ukraine war lifted sentiment.
As per media reports, Russia indicated that some parts of a possible peace deal with Ukraine were possible after Kyiv agreed to discuss neutrality.
Crude oil prices also remained near $100 a barrel, giving relief to domestic investors while the rupee gained 35 paise to close at 76.27 (provisional) against the US dollar.
Investors now shift focus to FOMC outcome which will be an important signal for central banks across the world regarding the course of a rate hike in the wake of the Covid-19 pandemic.
Sensex closed with strong gains of 1,040 points, or 1.86 percent, at 56,816.65 while the Nifty settled 312 points, or 1.87 percent, higher at 16,975.35. The rally in the market was broad-based as the BSE Midcap and Smallcap indices closed 1.80 percent and 1.47 percent higher, respectively.
"Ease in FII selling and crude prices is adding strength to the domestic trend. Positive global cues and strong bounce back by the Chinese market in anticipation of stimulus supported the trend. The world equity market has stabilized factoring in a 25bps hike in US FED, an in-line policy outlook, will be a relief to the market and we may see a drop in volatility," said Vinod Nair, Head of Research at Geojit Financial Services.
UltraTech Cement (up 4.69 percent), Axis Bank (up 3.65 percent) and IndusInd Bank (up 3.60 percent) closed as the top gainers in the Sensex kitty of stocks.
Only two stocks - Sun Pharma (down 0.35 percent) and Power Grid (down 0.07 percent) - ended in the red in the 30-share pack Sensex.
Over 100 stocks, including Cholamandalam Investment and Finance Company, Rhi Magnesita India, Shankara Building Products, Usha Martin and West Coast Paper Mills, hit their fresh 52-week highs on BSE.
Investors bought in most sectors as all of them ended in the green, with BSE Realty rising almost 4 percent. Indices of oil & gas, metal, consumer durables, bank, auto, IT, finance and basic materials jumped over 2 percent each.
Investors became richer by ₹4.56 lakh crore in a day as the overall market capitalisation of BSE-listed firms jumped to ₹256.23 lakh crore from ₹251.67 lakh crore on March 15.
On the technical front, Nifty is now comfortably above the 16,800 level which was seen as a hurdle by many analysts. Now it has resistance at 17,200-17,300 levels.
"Nifty has staged a strong recovery with a combination of value and momentum. We expect the uptrend to sustain for the medium term. The March series is expected to see a limited downside with resistance placed at 17200-17300 levels. On the downside, support is seen at 16500-16600 levels. Buying on Dips is advisable with a focus on cement, NBFC and consumption space. Metals are expected to consolidate with high volatility," said Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities.
