Indian stock markets rebounded sharply, with Sensex gaining 677 points and Nifty closing near 25,000
Sensex Jumps 677 Points, Nifty Nears 25K: What’s Driving the Rally?
Indian stock markets staged a strong comeback, as the Sensex surges 677 points to close at 81,796, while the Nifty 50 gained 227 points, settling at 24,946. The rally comes despite ongoing geopolitical tensions, particularly the Israel-Iran conflict, which had weighed on investor sentiment in previous sessions.
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Market analysts attribute the rebound to positive global cues, easing crude oil prices, and strong domestic institutional investor (DII) inflows. The IT, realty, and metal sectors led the charge, with Tech Mahindra and UltraTech Cement emerging as top gainers.
Sectoral Performance: IT and Banking Stocks Lead the Charge
The IT sector outperformed, driven by renewed optimism over an India-US trade deal and expectations of dovish signals from the US Federal Reserve. Banking stocks also saw strong buying interest, with HDFC Bank gaining nearly 1% after Jefferies flagged robust credit growth.
Midcap and smallcap indices logged modest gains, with the Nifty Midcap 100 rising 0.93% and the Nifty Smallcap 100 gaining 0.95%. However, Tata Motors dragged the market, falling 3.6% due to muted margin guidance for JLR.
Investor Sentiment: Resilience Amid Global Uncertainty
Despite mounting global uncertainty, Indian markets remained resilient, buoyed by strong domestic fundamentals. Analysts believe that long-term investors can use this risk-off scenario to buy relatively attractively valued stocks, particularly in the financial and IT sectors.
The India VIX (Volatility Index) fell by 1.84%, indicating reduced market fear and uncertainty, which encouraged more buying. Additionally, DIIs have pumped in nearly ₹89,000 crore over the last 19 trading sessions, showing strong domestic support for equities.
Final Thoughts: Will the Rally Sustain?
With global markets stabilizing and domestic fundamentals remaining strong, analysts expect continued momentum in Indian equities. However, geopolitical risks and central bank policies will remain key factors influencing market trends.
As investors navigate uncertainty and volatility, the question remains, will Sensex and Nifty sustain their upward trajectory, or is another correction on the horizon?
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