Is worst behind?

The analysts believe that the worst of the sell-off is over, but they remain skeptical about the sustainability of the rally. Overall, they expect this upward momentum to continue amid sustained buying interest, improving FII flows, strengthening of INR against U.S. Dollar and overall supportive global market cues. The rally was also supported by value buying as valuations returned to long-term averages and early indications of earnings growth recovery emerged.

“The key factor driving the domestic market is the return of FII inflows after prolonged period of selling, with FIIs being net buyers of nearly Rs6,000 crore last week. Market sentiments were further supported by positive global cues after the US President hinted about flexibility in reciprocal tariffs. There is optimism that India could be benefitted from this, amidst US plans to impose reciprocal tariffs on its trading partners (including India) from 2nd April,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Vinod Nair, Head of Research, Geojit Investments, said that the increased government spending and expected monetary easing are anticipated to boost optimism in rate-sensitive sectors such as banking, NBFCs, auto, consumer durables, and real estate, leading to potential outperformance. The sustainability of this trend will depend on upcoming PMI data, Q4 earnings results, and developments related to reciprocal US tariffs, he added.

In technical terms, the Nifty index is expected to maintain positive bias and gradually head towards 23,800 levels in the coming weeks being the high of February 2025. While immediate support is placed at 23200-23,000 levels being the confluence of 50 days EMA and recent trendline breakout area, Bajaj Broking said in a note.

A bullish candle on daily charts and an uptrend continuation formation on intraday charts indicate further upward movement from the current levels, said Shrikant Chouhan, Head Equity Research, Kotak Securities.

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Mcap of BSE listed companies

M-cap of BSE-listed cos rise by ₹26 lakh cr in 6 sessions; Nifty outperforms global peers