NIFTY OUTLOOK FOR 28 MARCH 2025

 Indian Equity Market Report – March 27, 2025

Market Summary: On March 27, Indian equity markets closed on a strong note, with the Nifty 50 ending at 23,600 and the Sensex rising by 317.93 points or 0.41% to 77,606.43. The Nifty 50 gained 105.10 points or 0.45% to close at 23,591.95. Despite an initial bout of volatility due to concerns over US tariffs on auto imports, the markets exhibited resilience, with broader indices posting gains.

Key Market Drivers:

1. FII Activity: Foreign Institutional Investors (FIIs) returned as net buyers, purchasing shares worth over Rs 21,377 crore in the past five sessions. This marked a significant shift in sentiment after months of net selling.

2. Valuations: The Nifty’s P/E ratio stood at 21.04 times as of March 25, lower than its five-year average of 24.80 times, making valuations more attractive.

3. Domestic Fundamentals: Optimism was driven by strong domestic economic indicators, easing liquidity conditions, and expectations of double-digit earnings growth in FY26.

4. Sectoral Performance:

   • Top Performers: Energy, realty, PSU banks, and media sectors outperformed.

   • Underperformers: Auto (-1%) and pharma (-0.4%) sectors were negatively impacted by US tariff concerns.

5. Broader Market: The BSE Midcap index gained 0.5%, while the Smallcap index outperformed, rising nearly 1%.

Technical Analysis:

• The Nifty found support at the 100 EMA on the daily chart.

• The index formed a Piercing candlestick pattern, suggesting a potential reversal of the recent corrective phase.

• Immediate resistance is at 23,800, and a breakout above this level could push the index towards the psychological mark of 24,000.

• Support is seen at 23,400.

Market Movement on Expiry Day: On the monthly expiry day, the Nifty remained sideways after a strong opening, eventually closing 0.45% higher at 23,591.95. The session saw a strong recovery from lower levels but oscillated within a narrow range. Option position buildup also suggested an expiry around the 23,600 level.

Sectoral Highlights:

• Positive Sectors: Media, oil & gas, and realty rose by 1% each.

• Weak Sectors: Auto stocks faced selling pressure due to concerns over a 25% US tariff on auto imports.

• Stock Performance:

  • Gainers: Hero MotoCorp, Bajaj Finserv, IndusInd Bank, HDFC Life, NTPC.

  • Losers: Tata Motors, Sun Pharma, Eicher Motors, Maruti Suzuki, Bharti Airtel.

Outlook:

• The short-term sentiment remains positive, with potential upside towards 23,800 if the Nifty sustains above 23,600.

• The broader market is expected to remain resilient, supported by strong FII inflows and optimism around earnings growth in FY26.

• Volatility could persist due to ongoing US-India trade discussions and global macroeconomic developments.

Conclusion: Despite mixed global cues and sector-specific challenges, the Indian equity market ended on a strong note, driven by FII inflows, attractive valuations, and domestic economic resilience. Market participants should remain focused on selective stock opportunities while navigating short-term volatility.