The stock market recorded a huge leap on March 18. This happened because foreign institutional investors (FIIs) covered their short positions and began buying stocks. This reversal followed a month of consistent selling by foreign investors, leading to notable growth in key indices that reached their highest levels in more than a month.
As per industry data, 101 stocks had short covering by foreign investors. Shares of Reliance Industries reported the highest activity. Foreign investors enhanced their shareholding in Reliance. This was the highest among all stocks trading in India’s futures and options market.
Industry experts believe that the Indian stock market is gradually approaching the end of a correction period. As investors move some positions for the next trading cycle, the market is expected to become more positive. However, they have also cautioned investors against becoming overly optimistic by relying on just a single day’s data.
Even with foreign investors selling, The Indian stock market has been performing well in March. As per news reports, a 500-point jump in the Nifty can occur in the future, with profit-taking happening at around 23,500-24,100 points.
On March 18, foreign investors purchased shares worth ₹1,462.96 crore. They acquired shares worth ₹15,450.39 crore. Besides, they sold shares worth ₹13,987.43 crore.
On March 18, banking, metal, and auto stocks recorded a notable surge. This led to a buying frenzy among people. The Nifty and Sensex also reached a month high. This was their highest single-day rise in more than a month.
On Wednesday, the Nifty jumped 325 points, or 1.45 percent, to 22,834. The Sensex rose 1,131 points, or 1.53 percent, to 75,301. Both indices briefly crossed a key resistance level. This level is called the 21-day EMA.
As of 11.18 AM, the Nifty 50 was uo 0.27% at 22,895.95 points, while the BSE Sensex was up 0.21% at 75,460.29 points.
The market’s surge on Wednesday signals a potential movement in foreign investor’s sentiment. Short covering led to a significant rally and pushed the indices to new highs. News reports suggest continued market optimism, despite cautioning against over-interpretation of single-day data. While future trends are yet to unfold, today’s activity mirrors the strong resilience of the stock market, hinting at possible growth in the future.
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. (write in all articles related to stocks).
Published on: Mar 19, 2025, 11:41 AM IST
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