Mumbai: The Indian stock market continued its strong upward momentum Monday — fuelled by several key factors, including expectations of a rate cut by the Reserve Bank of India (RBI), strong buying by domestic and foreign investors, and a positive outlook on the Indian economy by global analysts.
The benchmark indices opened higher and extended the winning streak during the intra-day trading session, marking gain for six consecutive sessions.
The Nifty 50 index opened in the green at 23,515 and quickly surged to an intra-day high of 23,650. This marked a sharp gain of over 1,253 points, or 5.50 per cent, in the last six sessions.
The Sensex also saw a strong opening at 77,456 before climbing to a day’s high of 77,897, reflecting a 4,069-point rise, or 5.45 per cent, over the past six sessions.
Banking stocks led the rally, with the Bank Nifty index opening at 50,982 and reaching an intra-day high of 51,769.
Market experts have attributed this surge to multiple factors. The primary driver is the growing expectation of an RBI rate cut following signals from the US Federal Reserve last week.
A stable Indian rupee, consistent buying by both domestic institutional investors (DIIs) and foreign institutional investors (FIIs), and Morgan Stanley’s strong outlook for the Indian economy and inflation have further boosted investor sentiment.
Analysts also expect a rebound in India’s GDP, which could result in stronger fourth-quarter earnings for 2025.
“Investor sentiment toward India remains structurally positive. The country is increasingly being viewed as a long-term growth story, underpinned by strong digital infrastructure, ongoing economic reforms, favourable demographics, and rising consumption potential,” said Mahendra Patil of MP Financial Advisory Services.
The banking sector has been among the top performers, with a 3,709-point gain, or 7.70 per cent, in just six trading sessions. The index is already trading above its 2025 opening level of 50,860.
Broader markets have outperformed the key indices, with the BSE Small-Cap index rising over 9.60 per cent in the last six sessions and the BSE Mid-Cap index gaining 8.30 per cent.
By mid-day, 540 BSE-listed stocks had hit their circuit limits, with 328 touching the upper circuit and 212 hitting the lower circuit. Additionally, 80 stocks reached a 52-week high, while 81 stocks fell to a 52-week low.
IANS
