**

Market Snapshot

The Indian equity benchmarks, Sensex and Nifty 50, closed significantly higher on Wednesday, March 18, 2026, marking their third consecutive session of gains. The BSE Sensex jumped 633.29 points, or 0.83%, to settle at 76,704.13, having touched an intraday high of 77,000.22. Similarly, the NSE Nifty 50 surged 196.65 points, or 0.83%, to end at 23,777.80. The broader market displayed even stronger momentum, with the Nifty Midcap 100 rising 2.02% and the Smallcap 100 gaining 1.67%.

Institutional Flows: Cash Market

Institutional activity remained a "tug-of-war" between foreign caution and domestic resilience. According to provisional exchange data for March 18, 2026:

• Foreign Institutional Investors (FIIs) remained net sellers in the cash segment, offloading equities worth ₹2,714.40 crore.
• Domestic Institutional Investors (DIIs) continued to provide a crucial cushion, acting as net buyers with an estimated inflow of ₹3,253.00 crore.
• The combined institutional net inflow for the day stood at ₹538.60 crore, highlighting how domestic liquidity is currently absorbing the pressure from global sell-offs.

Derivatives Market Activity

Volatility showed signs of cooling even as the Nifty struggled to decisively breach the 23,850 resistance level.

• India VIX, the market's volatility gauge, slumped 4.56% to settle at 18.89, suggesting a slight reduction in immediate fear among traders.
• Technical analysts noted heavy call writing in the 23,850–24,000 range, which acted as a ceiling for the day's rally.
• Short covering was observed in the final hour of trade, particularly in IT and Realty heavyweights, helping the indices close near their daily highs.

Key Drivers and Outlook

The market's upward trajectory was primarily fueled by a rebound in the IT sector and opportunistic value buying following recent corrections.

• Sectoral Performance: The Nifty IT index was the standout performer, led by gains in Tech Mahindra, Infosys, and HCL Tech. Realty and Media sectors also posted strong advances, while FMCG and Metal indices were the only sectoral laggards.
• Geopolitical Tensions: The ongoing US-Iran conflict continues to keep investors on edge. Reports of intensified attacks in the Middle East have kept crude oil prices volatile, though Brent crude stayed relatively stable around the $103 per barrel mark during domestic trading hours.
• Currency Pressure: The Indian Rupee hit a fresh all-time low of 92.58 against the US Dollar, driven by aggressive importer demand and global dollar strength ahead of the US Federal Reserve's policy decision.
• Global Cues: Positive trends in Asian markets, including a 5% jump in South Korea’s Kospi and a nearly 3% gain in Japan’s Nikkei, provided a supportive backdrop for Indian equities.

Looking ahead, market participants are laser-focused on the US Federal Reserve's interest rate decision and subsequent commentary. While domestic sentiment remains supported by consistent DII inflows, the persistence of the primary downtrend and technical resistance near 24,000 suggests that investors should remain cautious and wait for a sustainable breakout before committing fresh capital.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: ** FII DII Stock Market Institutional Investors Nifty Sensex