Indian stock markets kicked off the week on a strong note, with both Sensex and Nifty pushing higher. Gains were driven by heavyweight stocks like Bajaj Finserv and Dr. Reddy’s, even as global market dynamics and rising commodity prices cast a long shadow.
Markets Open Strong Despite Global Uncertainty
The week started with a sense of optimism. Sensex surged over 300 points in early trade, hovering around 74,600, while Nifty flirted with the 22,500 mark.
Investors seemed buoyed by the positive sentiment flowing from Wall Street’s Friday recovery, where the Dow Jones shot up over 670 points. The ripple effect spread across Asian markets too, with Japan’s Nikkei and South Korea’s Kospi also starting in the green.
But it’s not all sunshine and roses — global uncertainty still looms. With gold prices hitting unprecedented highs and crude oil climbing, investors are keeping a wary eye on what’s coming next.
Gold Shines Bright as Safe Haven Demand Soars
Gold prices crossed $3,000 per ounce last week — the 13th record high this year. It’s an eye-watering rally, largely driven by escalating trade tensions and fresh tariffs from the United States.
Why is gold on fire? One word: uncertainty. As markets wobble, investors seek safer ground. Gold, the classic refuge, has once again proven its mettle. This surge, however, raises questions about inflation and potential liquidity crunches.
- Demand remains high in Asian markets, particularly in India and China, where cultural and economic factors drive long-term gold buying.
- Central banks are reportedly upping their reserves, signaling a broader trend of hedging against currency devaluation.
The big question now — will gold keep climbing, or are we nearing a bubble?
Crude Oil Edges Higher Amid Middle East Tensions
Oil markets saw a bump too. Brent crude and WTI both rose over 1%, fueled by the US pledging continued airstrikes on Yemen’s Houthi rebels.
The Iran-backed group’s attacks on key shipping routes in the Red Sea have rattled energy supply chains. Shipping costs are climbing, and refiners fear bottlenecks. Any further escalation could hit global fuel prices hard — and that means trouble for emerging economies like India.
One thing’s clear: oil’s volatility is back.
All Eyes on the Fed’s Big Decision
Investors are now bracing for the US Federal Reserve’s two-day policy meeting, starting March 18. After slashing interest rates by 100 basis points since September, the Fed is expected to hold steady this time.
Fed Chair Jerome Powell has hinted at keeping rates stable, but rising inflation worries — partly driven by new tariffs — could force a rethink. Markets worldwide will be watching for any signals about future rate moves.
The policy announcement, set for March 19, could sway global markets sharply. A hawkish stance could spell trouble for emerging market currencies and trigger fresh volatility.
Bajaj Finserv and Dr. Reddy’s Lead the Charge
Back home, Bajaj Finserv and Dr. Reddy’s emerged as top performers in Monday’s session. Bajaj Finserv climbed over 4%, bolstered by strong quarterly earnings and a bullish outlook on consumer lending.
Dr. Reddy’s Laboratories followed suit, gaining 3% on news of a major pharmaceutical deal in the US. The drugmaker’s focus on generic expansion has resonated with investors eyeing resilient healthcare plays.
Other notable gainers include:
| Stock | Change (%) |
|---|---|
| Bajaj Finserv | +4.2% |
| Dr. Reddy’s | +3.1% |
| HDFC Bank | +2.8% |
| Reliance Ind. | +2.4% |
On the flip side, IT stocks took a breather. Infosys and TCS slipped marginally, weighed down by fears of slower overseas demand.
