Nifty50 and Sensex sustain four-day rally

Kaityn Mills
By Kaityn Mills
3 Min Read
Sensex Rally

Indian benchmark indices, Nifty50 and Sensex, continued their upward trajectory for the fourth consecutive session, supported by positive performance in the banking and IT sectors. The US Federal Reserve’s commitment to a rate cut outlook for 2025 provided a boost to investor sentiment, contributing to the market rally. Robust performance in the IT sector drove significant gains, contributing to the overall positive trend in the stock market.

Positive cues from global markets also played a crucial role in uplifting Indian shares. Movements in US treasury yields and currency exchange rates supported the momentum in Indian equity markets.

The Nifty 50 gained significantly, with market participants reacting positively to the broader global cues which have been improving recently.

Analysts suggest that the recent dip in prices created an attractive entry point for investors, which coupled with encouraging international market trends, contributed to the robust session. In addition to the Nifty 50, other key indices on the Bombay Stock Exchange also saw substantial gains, reflecting the overall positive sentiment in the market. Investors were particularly buoyed by signs of stabilization in international markets, which have been volatile in recent times.

Global cues lift Indian shares

Economic experts are cautiously optimistic about the outlook, pointing to the importance of sustained global market stability for continued recovery in domestic markets. For markets, the possibility of lower US rates boosts the appeal of Indian equities for global investors.

As inflation expectations shift, Indian stocks gain favor among those who were wary of high valuations. Keep an eye out for a recovery in mid-cap and small-cap indexes, which have dropped significantly from their highs. The Fed’s rate approach and tariff effects create a nuanced backdrop affecting investor actions worldwide.

Indian firms like Wipro and Hyundai, as they adapt to evolving economic conditions, contribute to a dynamic interplay influencing both foreign investment and domestic economic strength. The interaction between US policy and local developments, such as Mazagon Dock’s submarine advancements, underscores a vibrant economic ecosystem. Overall, the combination of US monetary policy and positive domestic developments positions the Indian stock market for a strong opening and continued investor interest.

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Kaitlyn covers all things investing. She especially covers rising stocks, investment ideas, and where big investors are putting their money. Born and raised in San Diego, California.