Nifty breaks 10-session losing streak; sensex surges

A man walks near the bronze statue of a bull outside the BSE in Mumbai. File
| Photo Credit: AP

Frontline stock indices on Wednesday (March 5, 2025) made a strong rebound with the Nifty breaking its 10-session losing streak and ending up by 1.15% at 22,337.30 rekindling hope in a depressing environment.

After three-session consecutive fall, the BSE Sensex surged over 1%, or 740 points, to close at 73,730.23 led by Adani Ports (5.02%), Tata Steel (4.92%), Power Grid (4.27%), M&M (4.27%) and NTPC (4.06%).

“The benchmark indices saw a strong recovery from the oversold zone. The pullback was driven by several factors, including strength in Asian markets, bargain buying in oversold stocks, and value buying in blue-chip stocks, Bajaj Broking wrote in a note to it’s clients.

All 13 major sectoral indices closed in the positive territory with Metals, Information Technology, and Automobile stocks leading the rally. 

The BSE Midcap and BSE Smallcap indices surged by 2.66% and 2.8%, respectively.

Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity said, “A key catalyst behind the market surge was a statement from the U.S. Commerce Secretary, indicating that the Trump administration might ease tariffs that had previously triggered a global market sell-off.”

“The U.S. could announce a plan to gradually scale back tariffs on Mexican and Canadian goods under NAFTA, ensuring flexibility in trade negotiations. Additionally, positive cues from Asian markets fueled investor sentiment,” he added. 

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Hong Kong’s Hang Seng Index surged nearly 2% as China pledged fresh stimulus measures to offset trade tensions with the U.S. Japan’s Nikkei also traded higher, further boosting confidence in global markets.

Devarsh Vakil, Head of Prime Research, HDFC Securities strong uptick in U.S. futures and easing oil prices facilitated the rebound. 

“The Nifty managed to close above its 5-day exponential moving average (EMA) for the first time since February 6, 2025, potentially signalling a reversal from a bearish to a bullish trend in the short term,” he said 

Rajesh Bhosale, Technical Analyst, Angel One Ltd. said the recovery was well-supported by broad-based buying.

“Looking ahead, we expect this positive momentum to continue. However, considering the recent trend where bounces have been short-lived and sold into, we would avoid labelling this as a confirmed bottom just yet,” he cautioned.