Benchmark indices Nifty and Sensex were in firm green in early trading on March 18, extending gains for a second session in a row after robust global cues boosted sentiment. Stocks in the US rose on Monday, building on their comeback from a four-week rout on Wall Street. The February retail sales report provided a boost to sentiment, as traders were relieved the numbers weren’t worse.

At 10:56 am, the Sensex was up 853.20 points or 1.15 percent at 75,023.15, and the Nifty was up 253.20 points or 1.12 percent at 22,761.95. About 2,559 shares advanced, 826 shares declined, and 115 shares unchanged.

The market is expected to remain stable with a positive bias in the near term, supported by improving macroeconomic indicators and easing foreign investor outflow, experts say. India's recent outperformance against the US, along with a rebound in GDP growth to 6.2 percent in the third quarter of FY25, a rise in industrial production to five percent in January, and a drop in retail inflation to 3.61 percent in February, provide a strong foundation for the market.

"Investors were encouraged to see a rebound in U.S. retail sales for February, which climbed 0.2 percent for the month, after falling 0.9 percent last month. The Federal Reserve will hold its March FOMC meeting on Tuesday and Wednesday this week, with investors expecting the Fed to keep rates steady at 4.25 percent to 4.5 percent and an updated set of economic projections expected on Wednesday afternoon," Devarsh Vakil, Head of Prime Research at HDFC Securities said.

Investors will also be keeping a close watch on Japanese markets, as the Bank of Japan kicks off its two-day monetary policy meeting on Tuesday. The central bank is widely expected to hold interest rates steady at 0.5 percent when the meeting concludes on Wednesday.

The broader market, represented by the mid and smallcap indices also mirrored positive trends with gains of 1.2 percent and 1.6 percent, respectively. Despite today's performance, the two are down 15 and 20 percent respectively year-to-date. A host of analysts still believe that more pain is left in the space.

All 13 sectoral indices traded in the green. Nifty Auto, Bank, FMCG, Realty, and Metal were the top gainers, rallying over 1 percent each. Nifty IT, Infra, and Pharma followed closely with gains of about about a percent each.

Bajaj Finserv shares opened marginally lower by 1 percent after the company announced it is set to take full control of its insurance ventures by acquiring Allianz SE’s 26 percent stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance for Rs 24,180 crore ($2.83 billion). The deal marks the end of a nearly 25-year partnership between the two firms, confirming Moneycontrol’s earlier report from January.

Shares of International Gemological Institute Ltd (IGI) slipped 5 percent to hit a lower circuit of Rs 288 in morning trade on March 18, as the expiry of its three-month shareholder lock-in period opens up 2.28 crore shares—equivalent to 5 percent of the company’s total equity—for trading. IGI’s stock, which once soared to a post-listing high of Rs 642, has been on a steady decline, plunging nearly 55 percent to a low of Rs 282 since its debut.

IRCON shares were up by 7 percent after receiving an EPC contract worth Rs 1,096.2 crore from the Government of Meghalaya. It has won this contract in a joint venture with Badri Rai and Company, with IRCON holding a 26 percent share and Badri Rai holding 74 percent. The contract involves the construction of a new Secretariat Complex, including campus infrastructure, on an engineering, procurement, and construction (EPC) basis in New Shillong City, Meghalaya.

"After a positive opening, Nifty can find support at 22,450 followed by 22,350 and 22,300. On the higher side, 22,700 can be immediate resistance, followed by 22,750 and 22,800," Hardik Matalia, Derivative Analyst at Choice Broking said. "The charts of Bank Nifty indicate that it may get support at 48,200 followed by 47,900 and 47,700. If the index advances further, 48,600 would be the initial key resistance, followed by 48,800 and 49,000," he added.

ICICI Bank, Hindalco, Larsen and Toubro, M&M, and Shriram Finance were the top gainers on the Nifty. Laggards included Bajaj Finserv, Bajaj Finance, IndusInd Bank and, BPCL.