Key Trends to Watch in March 2026: Auto Sales, Inflation Number and More

As we head into March 2026, the Indian stock market has shown resilience and renewed momentum after a volatile start to the year. Both the Sensex and Nifty 50 have been trading higher, with recent sessions witnessing broad‑based buying across sectors, including auto and banks, pushing key indices back above crucial levels after intermittent profit‑taking phases. 

Bulls have been encouraged by strong domestic demand signals and improved foreign portfolio flows, which have helped support the Indian rupee and sentiment on Dalal Street. In this article, we will be looking at key trends to watch in March 2026, as the Indian stock markets are highly influenced by the financial events.

Key Trend to Watch in March 2026

February 2026 Auto Sales Data

One of the first major data points for March arrives with auto sales figures released on March 1–2. According to industry previews, passenger vehicles (PVs), two‑wheelers (2Ws), and commercial vehicles are expected to see robust year‑on‑year growth, with PV wholesales potentially rising around 12%, 2Ws up as much as ~33%, and tractors/medium & heavy CVs also posting solid expansions.

Inflation Dynamics: CPI Expectations and RBI’s Posture

Inflation remains a market driver. India’s Consumer Price Index (CPI) inflation stood at 2.75% in January 2026 under the new base series, comfortably within RBI’s target band, and even below consensus expectations.

In March, traders will be watching:

• The next CPI print will shape the RBI’s rate stance.
• RBI’s forecast that CPI may stay moderate for Q4 FY26, potentially around 2.9% by quarter‑end.

Also Read: Securities and Exchange Board of India Unveils ‘Life Cycle Funds’ to Encourage Goal-Based Investing

U.S. Federal Reserve (FOMC) Meeting – Global Flow Dynamics

Another key macro event is the U.S. Federal Reserve’s FOMC meeting scheduled on March 17–18, 2026, with the policy decision expected on March 18. 

Why the Fed matters to Indian markets:

• Global liquidity trends and U.S. interest rate expectations heavily influence foreign institutional investor (FII) flows into Indian equities.
• A surprise shift, such as signals of further monetary tightening or slower expected cuts could strengthen the U.S. dollar and trigger capital outflows from emerging markets.
• Conversely, continued expectations of stability/easing in the U.S. can buoy Indian markets through currency and flow support.

Conclusion

March 2026 is shaping up to be a pivotal month for Indian equities, with data releases, central bank decisions, and global macro themes driving market tides. Whether you’re a long‑term investor or an active trader, staying informed and agile will be crucial as these trends unfold.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.