The Indian stock market witnessed a significant rally on Monday, March 24, 2025, as bank and real estate stocks surged following the cancellation of a proposed nationwide bank strike. The benchmark indices, BSE Sensex and NSE Nifty, experienced strong gains, with the banking sector leading the charge. Investors responded positively to the news, driving the market higher throughout the trading session.
At 12:45 PM, the BSE Sensex had gained 972.91 points, or 1.27%, reaching 77,878.42. Meanwhile, the broader NSE Nifty was up 286 points, or 1.22%, trading at 23,636.40. This upward momentum was fueled by optimism surrounding the resolution of the bank union strike, which was expected to disrupt banking operations nationwide.
Among the 30 Sensex-listed companies, NTPC emerged as the top gainer, rising by 4.36% to trade at ₹366.45. Kotak Mahindra Bank followed closely with a 4.24% rise, trading at ₹2,172.75, while State Bank of India (SBI) gained 2.72%, reaching ₹773.50. The positive movement in banking stocks reflected the relief among investors after the strike was called off, eliminating concerns about potential disruptions in financial services.
Only six out of the 30 Sensex stocks were in the red, highlighting the broad-based rally across the market. The surge in banking stocks was particularly notable, given their significant weightage in the indices. The real estate sector also witnessed substantial gains, with the Nifty Realty Index climbing by 2.01% to reach 880.10.
The proposed bank strike was initially planned by the United Forum of Bank Unions (UFBU), a collective representing over eight lakh employees across various banking institutions, including public sector banks, private banks, foreign banks, cooperative banks, and regional rural banks. The strike was scheduled for March 24 and 25 in protest against unmet demands presented to the Indian Banks' Association (IBA).
Some of the key demands included:
However, following discussions, the strike was eventually called off, bringing relief to banking institutions and investors. The cancellation of the strike played a crucial role in boosting market sentiment, as fears of banking service disruptions eased.
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The banking sector's gains were evident in the performance of sectoral indices. The Nifty PSU Bank Index surged by 2.84%, reaching 6,305, while the Nifty Private Bank Index climbed 2.46% to 25,852.65. The overall market rally was supported by a strong performance in other sectors as well, including real estate and oil & gas.
The stock market had opened on a strong note at 9:15 AM, with the BSE Sensex up 481.79 points, or 0.63%, at 77,387.30. The NSE Nifty also started in the green, gaining 124.70 points, or 0.53%, at 23,475.10. Early gainers included NTPC, which rose 2.15% at ₹358.70, Tata Motors, which gained 1.72% at ₹714.95, and Power Grid Corporation of India, which climbed 1.38% to ₹286.90.
The positive momentum in the Indian stock market was also influenced by global trends, particularly in the energy sector. Oil prices remained subdued, contributing to the gains in oil and gas stocks. Brent Crude for May 2025 futures was down 0.46%, or $0.33, trading at $71.83 per barrel. Similarly, WTI Crude was down 0.42%, or $0.29, at $67.99 per barrel. The decline in oil prices provided relief to industries dependent on fuel costs, further supporting market gains.
The rally in banking and real estate stocks, combined with favorable global conditions, created a positive environment for investors. With the bank strike no longer a concern, market participants remained optimistic about continued growth in the coming sessions.
Analysts believe that the stock market could maintain its upward trajectory, especially if banking stocks continue their strong performance. The resolution of labor disputes in the banking sector is expected to bring stability, ensuring that financial institutions operate without disruptions.
Investors will now focus on upcoming economic data and corporate earnings reports to gauge future market trends. The market’s ability to sustain these gains will depend on factors such as policy decisions, inflation trends, and global market conditions.
As the trading session continued, market participants remained watchful of further developments in the banking sector and broader economy. The relief rally following the strike resolution marked a significant moment for investors, demonstrating the importance of labor stability in maintaining confidence in financial markets.
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