BSE Sensex Rebounds After Consecutive Losses: Market Trends and Key Factors

After enduring 5 consecutive days of losses between March 7 and March 13, 2025, the BSE Sensex opened on a positive note on March 17, 2025. The index began the session at 73,830.03 and climbed to an intraday high of 74,376.32. However, as of 12:38 PM, the index was seen trading above the 74,000 mark but had pared some gains, maintaining a modest increase of 0.26%.

One of the key reasons for this pullback is the rise in India’s wholesale inflation, which climbed to 2.38% in February 2025. The increase has been attributed to higher prices in food products, textiles, and non-food articles, as per the latest data from the Ministry of Commerce and Industry. This uptick in inflation reflects rising input costs in manufacturing and essential commodities, creating a cautious market sentiment.

Market Breadth and Sectoral Performance

The overall market breadth remained positive, with the advance-decline ratio favouring gainers. As of midday, 17 stocks were trading in the green, while 13 stocks were in the red within the Sensex.

Sectorally, market performance remained mixed. Among the top-performing sectors were:

• BSE Bankex
• BSE Metal
• BSE Power

Conversely, BSE IT and BSE FMCG were the top laggards, both down by 0.50% each, indicating some pressure in technology and consumer segments.

Broader Market Trends and Valuation

Despite the day’s positive opening, the BSE Sensex remains nearly 14% lower than its September 2024 high. On a year-to-date (YTD) basis, the index has declined by 5.40%. Additionally, as of March 13, 2025, the Sensex’s price-to-earnings (PE) ratio stood at 20.55. 

Focus on US Federal Reserve Policy Decision

Looking ahead, global markets and domestic investors will closely track the upcoming US Federal Reserve meeting. The two-day Federal Open Market Committee (FOMC) meeting is scheduled to commence on March 18, with a policy decision expected on March 19.

The Fed has already implemented a cumulative 100-basis-point rate cut since September 2024. However, Fed Chair Jerome Powell has signalled concerns regarding rising tariffs, which could further complicate inflation control measures. With expectations that the central bank will maintain current interest rates, market participants remain watchful of any policy indications that could impact global liquidity and investor sentiment.

Conclusion

The BSE Sensex’s recovery after a losing streak reflects cautious optimism among investors, though rising wholesale inflation remains a point of concern. While sectoral performance is mixed, banking, metals, and power stocks have shown resilience. The upcoming US Fed policy decision will be a crucial event, potentially shaping market movements in the coming weeks. Investors will continue to monitor macroeconomic cues and global developments to assess future market trends.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.