Despite a strong stock market rally on March 20, 2025, over 100 BSE-listed stocks, including KEI Industries and Exxaro Tiles, hit their 52-week lows. The Sensex surged by 899.01 points, and Nifty 50 climbed 283.05 points, driven by IT sector gains and positive global cues. Analysts attribute the rally to the US Federal Reserve’s decision to maintain interest rates and expectations of future rate cuts.
Despite a significant rally in the Indian stock market, over 100 BSE-listed stocks hit their 52-week lows on Thursday. The surge in the market was fueled by positive global cues and a strong performance from the IT sector, yet several companies, including KEI Industries, Exxaro Tiles, Praxis Home Retail, and Vikas EcoTech, faced downward pressure.
On March 20, the Sensex soared 899.01 points to close at 76,348.06, while the Nifty 50 jumped 283.05 points to settle at 23,190.65. This market uptrend was primarily attributed to investor optimism following the US Federal Reserve‘s decision to keep interest rates unchanged, hinting at potential rate cuts later in the year.
Market Trends and Analysis
Despite the market rally, some stocks struggled to keep pace. Companies such as ANG Lifesciences India, Adroit Infotech, Deccan Health Care, and Tree House Education & Accessories saw their share prices touch new lows. This divergence indicates that while some sectors are benefiting from the bullish momentum, others are facing sector-specific challenges.
The IT sector played a crucial role in boosting the market, with leading firms such as Tata Consultancy Services (TCS), Infosys, and Wipro recording notable gains. Other sectors, including Auto and FMCG, also witnessed substantial buying activity, contributing to the overall positive sentiment.
Analyst Perspectives
Vinod Nair, Head of Research at Geojit Financial Services, commented that the weakening US dollar index (DXY) has slowed Foreign Institutional Investor (FII) outflows, while strong Domestic Institutional Investor (DII) participation has supported the recent rally.
“Favorable domestic economic data and expectations of further rate cuts in 2025 are driving investor confidence. While the rally is expected to continue in the short term, it will ultimately depend on the upcoming Q4FY25 corporate earnings results,” Nair said.
Nifty 50 Outlook
Rupak De, Senior Technical Analyst at LKP Securities, noted that Nifty 50 has broken a falling trendline on the daily chart, signaling a bullish trend reversal. “With Nifty sustaining above the 21-day Exponential Moving Average (EMA), the short-term outlook remains positive. The index could potentially reach 23,400 and beyond, while support is established at 23,000.”
Key Takeaways
- Over 100 BSE-listed stocks hit their 52-week lows despite a broader market rally.
- The Sensex surged 899.01 points, while Nifty 50 gained 283.05 points.
- The IT sector led the uptrend, with gains in TCS, Infosys, and Wipro.
- Analysts cite US Fed policy and domestic economic data as key market drivers.
While the broader market remains optimistic, sector-specific struggles persist. Investors are advised to monitor corporate earnings and global economic developments closely as they navigate the volatile market landscape.
