Stock Market closing on March 20: Sensex up 325 pts, Nifty above 23100 – 5 key factors behind surge – Markets

Stock Market closing on March 20: Sensex up 325 pts, Nifty above 23100 - 5 key factors behind surge - Markets


Stock markets closed higher on Friday, staging a rebound after their steepest fall in two years in the previous session. Easing oil prices, positive global cues and strong IT buying boosted sentiment.

The BSE Sensex, after hitting an intraday high of 75,286.39, ended the session at 74,532.96, up 325.72 points or 0.44 per cent. The NSE Nifty50 settled at 23,114.50, up 112.35 points or 0.49 per cent. During the day Nifty50 swung between 23,345.15 and 23,067.60. Sensex and Nifty opened in green today. The BSE Sensex started at 74,559.38, while the Nifty 50 opened at 23,110.15.

5 reasons behind surge

A key driver of today’s rally is the decline in crude oil prices. Brent crude was traded at nearly $106 per barrel, down over 1.5 per cent, while WTI crude stood near $93, down over 1.9 per cent. This follows a surge in Brent to as high as $119.13 per barrel on Thursday after attacks on energy infrastructure in the Middle East.

Market sentiment has also strengthened after recent remarks from global leaders. US President Donald Trump said he had urged Israeli Prime Minister Benjamin Netanyahu to avoid further attacks on Iranian energy infrastructure. Meanwhile, comments from Israel’s Prime Minister indicated that additional strikes on oil and gas facilities may not occur.

Another key factor behind today’s gains is broad-based buying following the sharp sell-off in the previous session. On Thursday, the Sensex and Nifty had dropped 3.26 per cent, their steepest single-day fall since June 2024. The decline dragged many stocks to lower levels, prompting investors to step in and buy across sectors at relatively cheaper valuations.

Indian equity markets opened on March 20 with positive bias. The sharp fall in the previous session had pushed markets into oversold territory.

Moreover, Institutional activity remained mixed. Foreign Institutional Investors (FIIs) offloaded shares worth around Rs 7,558 crore in the previous session, signalling caution. In contrast, Domestic Institutional Investors (DIIs) bought shares worth about Rs 3,864 crore, helping cushion the fall and support the market.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)



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