- Indian benchmark indices, BSE Sensex and Nifty50, climbed by over 1.5% on March 3, marking the biggest single-day rally in the last 16 weeks.
- The market rally was driven by strong India and China services PMI data, positive global cues, and Adani Group’s fundraising via block deals with Goldman Sachs and GQG Partners.
- Nifty PSU Bank index gained the most with an over 5% rally after Adani Group’s fundraising, while Adani Enterprises and Adani Ports were among the top gainers, rising 17% and nearly 10%, respectively.
- Despite the surge, experts remain cautious about ongoing policy tightening by central banks and higher valuations that could lead to increased medium-term volatility.
Indian markets saw a significant surge on March 3, with benchmark indices posting their biggest single-day rally in the last 16 weeks. The BSE Sensex climbed 900 points or 1.53 percent to 59,809, while the Nifty50 surged 272 points or 1.57 percent to 17,594. The market rally was spurred by several factors, including the strong India and China services PMI data, positive global cues, and Adani Group’s fundraising via block deals with Goldman Sachs and GQG Partners.
The Nifty PSU Bank index saw the most significant gain with an over 5 percent rally, particularly after Adani Group’s fundraising. The Nifty Metal index rallied 3.5 percent, while the Nifty Private Bank index was up 1.6 percent. Adani Enterprises and Adani Ports were among the top gainers, rising 17 percent and nearly 10 percent, respectively. Ambuja Cements, Adani Green Energy, Adani Transmission, Adani Total Gas, Adani Wilmar, ACC, and Adani Power gained 5 percent each.
Investors’ wealth increased by Rs 3.3 lakh crore on March 3, with the BSE market capitalisation rising to Rs 263.30 lakh crore, up from Rs 259.99 lakh crore in the previous session. However, experts are cautious about the current rally, given the risk of ongoing policy tightening by central banks and higher valuations that could lead to increased medium-term volatility.
Naveen Kulkarni, chief investment officer at Axis Securities, advised investors to maintain investment discipline and continue investing regularly in equities for long-term wealth creation, especially during volatile market conditions.
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