HEGIndian equities appear to be in a consolidation phase with an upward bias

 

The Indian stock market delivered a strong performance on March 25, 2025, with benchmark indices posting impressive gains across major sectors. Investor sentiment remained upbeat throughout the day, driven by renewed foreign inflows, easing global trade concerns, and strong buying in select sectors like IT, pharmaceuticals, cement, and graphite.

 

Benchmark Indices Reflect Positive Momentum

 

The BSE Sensex climbed over 200 points during the session, while the NSE Nifty 50 advanced past the 23,700 mark. Traders focused on heavyweight sectors, including information technology and banking, which lifted the broader market. This positive trend followed easing tariff-related concerns on the global front and encouraging domestic cues from the Reserve Bank of India.

 

HEG and Graphite India Lead the Rally

 

Stocks related to the electrodes and graphite segment saw extraordinary gains. HEG Limited surged 10.99%, closing at ₹479.20. The stock gained strong momentum as traders responded to improved demand prospects from the steel sector and global graphite supply constraints.

Graphite India followed closely with a 9.17% rally, ending the session at ₹502.30. Market participants closely monitored developments in global commodity markets, where supply bottlenecks and rising input costs favored graphite manufacturers.

 

Couriers and Pharma Stocks Show Strength

 

Blue Dart Express delivered a solid performance, gaining 4.94% to close at ₹6,302.55. Investors bet on the continued rise of e-commerce logistics and last-mile delivery services, which continue to benefit Blue Dart’s operational scale.

Sanofi India moved higher by 4.47% to ₹6,095.00. The pharmaceutical major attracted strong buying interest after it reported improved margins and expanded therapeutic portfolio coverage across India. Additionally, gains in defensive sectors added stability to the overall market sentiment.

 

Cement Stocks Gain on Demand Revival Hopes

 

Birla Corporation jumped 4.24%, closing at ₹1,105.35. Analysts expect a pick-up in infrastructure and housing activity with the beginning of the new financial year, which usually brings strong volume growth for cement players.

UltraTech Cement surged 3.66% to ₹11,455.75, reflecting broad-based optimism within the cement sector. Cement manufacturers continue to benefit from reduced input costs and better operational efficiency, resulting in stronger profit margins.

 

Telecom Equipment and Retail Segments Climb

 

Bharti Hexacom added 4.17% to end at ₹1,447.70. With expanding mobile infrastructure in Tier-2 and Tier-3 cities, telecom equipment suppliers continue to show strong revenue potential. Bharti Hexacom gained investor interest for its aggressive expansion and increased capital expenditure toward 5G deployment.

Retail major Trent rose 3.21% to ₹5,217.00, supported by rising footfall across brick-and-mortar outlets and a robust online sales strategy. Market participants expect Trent to post strong quarterly numbers due to its hybrid retail approach and new store launches.

 

Pharma and Specialty Chemicals Attract Buyers

 

Piramal Pharma jumped 3.81% to ₹227.39. Traders turned bullish on the stock following positive developments around regulatory approvals and increased export demand for its contract development and manufacturing (CDMO) services.


Fine Organics, operating in the specialty chemicals space, gained 3.78% to end at ₹4,122.40. Growing global demand for food additives, polymer additives, and lubricants boosted investor confidence in the stock.

 

Sectoral Highlights: IT, Financials, and Cement Drive the Market

 

The IT sector led the rally with over 2% gains. Software exporters benefited from improved outlooks in North American markets after the U.S. administration hinted at a less aggressive stance on trade tariffs. This move reduced fears of disruptions to global tech services originating from India.

The financial sector added 0.4%, driven by strong performance in large-cap banking stocks. The Reserve Bank of India’s revised guidelines on priority sector lending played a crucial role in lifting sentiment. The new norms, which now cover expanded renewable energy criteria and raised home loan limits, opened up fresh growth avenues for lenders.

Cement companies saw renewed investor interest on expectations of strong demand in the upcoming fiscal year. Both institutional and retail investors placed long-term bets on this cyclical sector, anticipating robust activity in infrastructure development and housing.

 

Foreign Investment and Currency Performance

 

Foreign institutional investors injected ₹137.65 billion (approximately $1.61 billion) into Indian equities across the last three sessions. This renewed interest contributed heavily to market liquidity and boosted major index performances.

The Indian rupee strengthened against the U.S. dollar, closing at 85.6350 and marking one of the strongest levels year-to-date. A steady inflow of dollars due to end-of-fiscal-year transactions and equity investments supported the local currency. Currency traders expect the rupee to hold its gains if foreign inflows remain stable and crude oil prices stay under control.

 

Midcap and Smallcap Activity Remains Mixed

 

While the broader market closed positive, midcap and smallcap indices delivered mixed results. The Nifty Midcap 100 index remained largely flat, while the Nifty Smallcap 100 dipped by 0.5%. Investors opted for quality over quantity, preferring blue-chip counters with strong balance sheets amid global uncertainty and upcoming earnings announcements.

The divergence between large-cap and small-cap performance indicates a cautious approach by institutional buyers, who continue to allocate capital selectively rather than chasing high-risk, high-volatility names.

 

Market Outlook

 

With positive sentiment prevailing across global markets and domestic indicators showing strength, Indian equities appear to be in a consolidation phase with an upward bias. As the fiscal year-end approaches, traders and institutions continue to adjust their portfolios, keeping a close eye on macroeconomic triggers and earnings forecasts.

If current trends in foreign inflows, sectoral performance, and currency stability persist, benchmark indices could test higher resistance levels in the coming weeks. However, volatility may increase around key global economic data releases and policy developments.