Introduction
Indian equity markets opened the week on a strong note, with the BSE Sensex climbing 600 points to 84,800, driven by robust buying in banking, IT, and auto stocks. The NSE Nifty 50 also surged above the 25,600 mark, reflecting positive investor sentiment amid global market stability and improving domestic earnings outlook.
Market Overview
At 11:30 AM, the Sensex was up 0.7% at 84,800, while the Nifty gained 175 points to trade near 25,620.
Broader markets mirrored the rally, with the Nifty Midcap 100 and Smallcap 100 indices rising by over 0.8% each.
The market momentum was supported by foreign institutional inflows, easing crude oil prices, and optimism over the upcoming RBI policy stance, which is expected to maintain a stable interest rate environment.
Top Gainers and Sectoral Highlights
The rally was led by banking heavyweights and IT majors, which together accounted for most of the day’s gains.
Top Sensex gainers:
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HDFC Bank (+2.4%)
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Infosys (+1.9%)
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ICICI Bank (+1.6%)
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Tata Motors (+1.5%)
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Reliance Industries (+1.3%)
Among sectoral indices, Nifty Bank surged 1.2%, IT gained 1%, and Auto rose 0.8%.
Energy and FMCG stocks also traded in positive territory, reflecting broad-based market participation.
What’s Driving the Rally
Analysts attribute today’s uptrend to a combination of strong Q2 earnings and steady global cues.
“The recent correction in oil prices and improved earnings visibility in the banking sector have boosted market confidence. Additionally, IT companies are benefiting from the weakening rupee and signs of recovery in global tech spending,” said Anand Rathi, Senior Research Analyst at Motilal Oswal.
Foreign investors have turned net buyers after weeks of outflows, adding nearly ₹2,300 crore in Indian equities over the past three sessions, according to NSE data.
Global Market Sentiment
Global equities were also in the green, with Asian indices such as Nikkei 225, Hang Seng, and Kospi posting gains amid easing geopolitical tensions and expectations that the US Federal Reserve may pause rate hikes in its upcoming meeting.
The positive sentiment has spilled over into emerging markets, with India seen as a preferred destination for stable growth and long-term returns.
Rupee and Commodities
The Indian rupee strengthened marginally to ₹83.09 per U.S. dollar, supported by dollar weakness and strong equity inflows.
Meanwhile, Brent crude traded around $81 per barrel, easing inflationary pressures and improving outlooks for import-heavy sectors like aviation and chemicals.
Expert View
Market strategists expect the bullish momentum to continue in the near term but caution that valuations remain elevated.
“While the trend is positive, investors should be selective. The rally is largely earnings-led, and some profit booking could occur near the 85,000 mark on Sensex,” said Jyoti Prakash Gadia, Managing Director at Resurgent India.
Outlook
With global cues stable and domestic fundamentals strong, the Sensex appears poised to test new record highs in the coming sessions.
All eyes will now be on the U.S. Federal Reserve’s commentary later this week and upcoming RBI policy statements for cues on the medium-term trajectory of markets.
Conclusion
The sharp rally in Indian equities underscores investor optimism about India’s economic resilience and corporate growth trajectory.
If current momentum sustains, the Sensex may soon breach the 85,000 mark, cementing India’s position as one of the world’s best-performing markets in 2025.
