Last Updated on March 17, 2026 10:05 pm by INDIAN AWAAZ
AMN BIZ DESK
Indian equity benchmarks extended their recovery for a second straight session on Tuesday, as a sharp drop in volatility and short-covering ahead of the weekly derivatives expiry bolstered investor sentiment. The Nifty 50 surged 172.35 points, or 0.74%, to settle at 23,581.15, while the BSE Sensex climbed 567.99 points, or 0.75%, to finish at 76,070.84.
Despite the headline strength, the underlying market sentiment remained nuanced. While advances led declines (2,332 to 1,930), a staggering 440 stocks hit 52-week lows on the BSE, highlighting lingering pocket-specific distress.
Sectoral Pulse: Metals Shine, IT Lags
The rally was characterized by a distinct rotation into cyclical and rate-sensitive sectors:
- Metals & Mining: The top performer, led by Tata Steel (+4.42%), as global demand outlooks stabilized.
- Auto & Realty: Gained between 1-2%, with Mahindra & Mahindra (+2.85%) providing significant heavy-lift support.
- Energy & Infrastructure: Reliance Industries remained in the spotlight following a 15-year green ammonia supply pact with Samsung C&T, signaling long-term revenue visibility.
- IT & FMCG: Contrarian pressure persisted. The Nifty IT index fell over 2%, languishing near multi-year lows as heavyweights like Wipro and Infosys shed over 1%. ITC and Tata Consumer also dragged the FMCG pack down by 0.7%.
Volatility and Macro Headwinds
A standout feature of the session was the 8.39% crash in the India VIX, which settled at 19.79. Analysts noted that this sharp contraction in the “fear gauge” reduced option risk premiums, providing a stable floor for the intraday recovery after the Nifty hit an early low of 23,346.60.
On the currency front, the Rupee appreciated 5 paise to close at 92.37 against the USD. However, with crude oil hovering near $100 per barrel and the Dollar Index firming at 100, the domestic currency remains under pressure.
Outlook
While the two-day rebound is encouraging, market veterans advise caution. “It is premature to conclude this reversal is sustainable given war-related uncertainties,” cautioned Vinod Nair of Geojit Financial Services. Technically, the Nifty faces immediate resistance at the 23,700–23,740 zone. All eyes now move to Wednesday’s US FOMC meeting, which is expected to dictate the next directional move for global equities.