Final Trade: Markets gain for 3rd straight session; Nifty above 22,900, Sensex up 148 pts

Sustained gains with realty, and metal stocks leading the way Indian benchmark indices closed higher for the third straight session on March 19, with the Sensex gaining 148 points to close at 75,449.05 and Nifty settling at 22,907.60, higher by 73 points. The rally was sustained by the buoyancy of realty and metal stocks, while IT and FMCG sectors saw selling pressure.

Sectoral performance: Realty, PSU banks lead

Out of the 19 sectoral indices, 17 ended in the green. Nifty Realty jumped 2.80 per cent, PSU Bank index rose 1.98 per cent, and the Metal index ended 1.27 per cent higher. The Auto sector also registered modest gains of 0.40 per cent. On the negative side, IT fell 1.08 per cent and FMCG dropped 0.55 per cent as investors were cautious ahead of the Federal Reserve's policy announcement.

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Overall market rally persists

Midcap and smallcap stocks led the way, with the Nifty Midcap 100 index rising 2.63 per cent and the Nifty Smallcap 100 gaining 2.43 per cent. Positive foreign fund flows helped the positive mood. The overall breadth of the market was robust, reflecting general participation in the upsurge. Investors remained optimistic about domestic economic growth even in the face of global uncertainties, with retail as well as institutional investors leading the charge.

Gainers and losers

Nifty gainers included Shriram Finance, HDFC Life, Apollo Hospitals, Tata Steel, and Power Grid Corp. Losers were Tech Mahindra, ITC, TCS, Infosys, and Sun Pharma that dragged the index down. HDFC Bank, Reliance Industries, L&T, Tata Steel, and SBI from the Sensex pack rose, while Infosys, ITC, TCS, Tech Mahindra, and Kotak Mahindra Bank fell.

Metal sector stocks fared well on the back of government initiatives to help the domestic steel industry. Realty stocks witnessed robust buying interest as expectations of sustained demand growth in the housing sector remained. IT stocks, however, were under selling pressure as fears of slowing global technology expenditure and cautiousness before the US Fed policy decision weighed.

FIIs and DIIs continue to be net buyers

Foreign institutional investors (FIIs) became net buyers, acquiring shares worth Rs 694.57 crore, as did domestic institutional investors (DIIs), buying shares of Rs 2,534.75 crore, reflecting persisting faith in the market. Favorable domestic liquidity and positive earnings sentiments helped fuel sustained investor interest in buying.

Outlook and key triggers ahead

From here on, investors will carefully monitor world market trends, US bond yields, and crude oil prices for additional directions. The Federal Reserve policy direction on interest rates will be an important driver of sentiment. Domestic inflation data and corporate earnings will also be in the limelight, dictating market action in the near term.

With sustained optimism and sectoral resilience, investors now shift their attention to the Federal Reserve's interest rate decision, which may shape global sentiment in the next sessions. In spite of some profit-taking in some of the heavyweights, overall market sentiment remains optimistic, supported by robust economic fundamentals and rising business confidence.