Stock market today: Nifty 50, Sensex extend gains to 2nd day, gain nearly 1% each; smallcaps outperform

Indian markets extended their winning streak for the second consecutive session on Thursday, March 6, supported by positive global and domestic cues. The prolonged sell-off in domestic equities, which has made India the worst-performing major market since late September, has brought valuations to more reasonable levels, allowing value buyers to step in.

The Nifty 50 ended the session 0.90% higher at 22,528 points, while the Sensex closed at 74,354, marking a 0.90% gain from Wednesday’s close. The broader market indices also ended in the green, with the Nifty Midcap 100 rising 0.23% to 49,283, while the Nifty Smallcap 100 surged 1.13% to 15,370.

U.S. President Donald Trump announced a one-month exemption for automakers in Canada and Mexico from his 25% tariffs, provided they comply with existing free trade rules, the White House said on Wednesday. This triggered a rally in U.S. and European markets, while Asian markets also ended higher on Thursday.

Additionally, the continued drop in crude oil prices, which sent Brent crude futures below $70 per barrel for the first time in three years, fueled a rally in crude-sensitive stocks such as paints and oil marketing companies (OMCs). Meanwhile, banking and NBFC stocks gained after the Reserve Bank of India (RBI) announced new measures to inject ₹1.9 trillion into the banking system to boost liquidity.