Indian equity benchmarks, Sensex and Nifty, retreated from their intraday highs as February’s Wholesale Price Index (WPI) inflation stood at 2.38%. Meanwhile, BSE Midcap and Smallcap indices gained 0.5% each.
Across sectors, most indices traded in the green, with auto, metal, and pharma stocks rising between 0.5% and 1%, while FMCG and IT stocks lagged. Among the most active stocks on the NSE were IndusInd Bank, HDFC Bank, BSE Limited, Bajaj Finserv, and ICICI Bank.
Key Market Drivers:
Gold Holds Near Record Highs
Gold prices remained firm after breaching the $3,000 per ounce milestone for the first time last week. This marked the 13th record high this year, as investors flocked to the precious metal amid escalating market uncertainty. “Growing trade war tensions and new tariffs imposed by President Donald Trump have further unsettled investors,” analysts noted.
Wall Street Rebounds Sharply
US markets staged a strong comeback on Friday, reversing early-week losses. The Dow Jones soared over 670 points, while the S&P 500 and Nasdaq each rallied more than 2%.
Fed Meeting in Focus
The US Federal Reserve begins its two-day FOMC meeting on March 18, with expectations that interest rates will remain unchanged. Since last September, the Fed has cut rates by 100 basis points, though Fed Chair Jerome Powell has cautioned that “rising tariffs could make inflation harder to control.” The policy decision is set to be announced on March 19.
Crude Oil Prices Climb on Geopolitical Risks
Oil prices jumped over 1% as the US reaffirmed its commitment to airstrikes against Yemen’s Houthis, an Iran-backed group targeting key shipping routes. Brent crude and WTI crude each rose by more than $1 per barrel, fueling concerns over global supply disruptions.