Indian stock market witnessed a strong rally due to positive economic indicators and improving global sentiment
Mumbai: Monday’s robust advance in Indian stock markets was fueled by a better mood across the world and encouraging economic data. By the closing bell, both the BSE Sensex and the Nifty 50, two important indexes, had spectacular gains of more than 1.3%.
The BSE Sensex vaulted 1,078.87 points, or more than 1.4%, to end at 77,984.38, while the Nifty 50 index soared 307.95 points, or 1.32 percent, to conclude at 23,658.35.
Experts credit the rebound to stable trade circumstances, rising GDP growth patterns, and better government capital spending.
According to banking and market analyst Ajay Bagga, who spoke to the media, the RBI’s move to lower interest rates is one of many reasons that are helping the markets.
“The rebound in government capital expenditures, a positive turn in GDP growth, a limited trade imbalance, reduced global oil prices, maintained government revenues with strong tax collections, and the RBI’s triple action on interest rate cuts are all helping Indian markets at home. “The valuations have reached or fallen below the median valuations for the last ten years, which gives additional confidence to incremental flows, in contrast to elevated valuations in September 2025 at all-time high markets,” he added.
Additionally, he said that in order to increase credit growth, the Reserve Bank of India (RBI) has implemented three significant measures: lowering interest rates, increasing liquidity, and relaxing macroprudential lending regulations.
Investor confidence has also increased since market values, which peaked in September 2025, have now dropped to or below the 10-year median.
Nifty PSU Bank stocks had a robust increase of more than 3% among the NSE’s sectoral indexes, while Nifty IT witnessed a 1.42 percent gain. As a result of widespread purchasing across sectors, the Nifty Realty index increased by 1.34 percent, while the Nifty Oil & Gas index jumped by 1.44 percent.
Axis Securities’ Head of Research, Akshay Chinchalkar, emphasized that Monday’s surge was influenced by both local and international causes. “There are both internal and international elements that have contributed to the upsurge that we have seen. While there is optimism that profits are bottoming out and that values are more in line with the longer-term averages, providing appealing possibilities, there are expectations throughout the world that the next round of tariffs will be more modest,” he added.
Significant gains were made by Kotak Bank, NTPC, and SBI, which were among the top gainers in the Nifty 50 index. However, the session’s biggest losses were IndusInd Bank, Titan, Trent, and Mahindra & Mahindra.
According to analysts, foreign portfolio investors (FPIs) are progressively moving their money from the American markets to those in Europe, Japan, China, and India. Market sentiment is being improved by the gradual conversion of FPI outflows into net inflows. Additionally, since bearish bets are being filled rapidly, short covering is at play.
Analysts predict that Indian markets will continue to be robust in the days ahead due to better economic circumstances, declining inflation, and government assistance.
