Synopsis
The Indian stock market has shown remarkable growth, driven by expectations of an RBI rate cut, strong investments from both domestic and foreign entities, and a favorable economic outlook from global analysts.Key Takeaways
- Robust upward momentum in Indian stock market.
- Significant expectations of a rate cut by RBI.
- Strong buying activity from domestic and foreign investors.
- Positive economic outlook from global analysts.
- Banking sector leading the market rally.
Mumbai, March 24 (NationPress) The Indian stock market has maintained its robust upward trajectory on Monday, driven by several crucial elements, including the anticipation of a rate cut by the Reserve Bank of India (RBI), substantial purchases from both domestic and foreign investors, and a positive outlook on the Indian economy from global analysts.
The benchmark indices started strong and continued their winning streak during the intra-day trading session, achieving gains for six consecutive sessions.
The Nifty 50 index commenced in the green at 23,515 and quickly ascended to an intra-day peak of 23,650, representing a significant increase of over 1,253 points, or 5.50 percent, over the past six sessions.
The Sensex also experienced a vigorous opening at 77,456 before rising to a daily high of 77,897, reflecting a 4,069-point increase, or 5.45 percent, over the last six sessions.
Banking stocks spearheaded the rally, with the Bank Nifty index opening at 50,982 and reaching an intra-day high of 51,769.
Market analysts attribute this surge to several factors. The primary catalyst is the increasing 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), along with Morgan Stanley’s optimistic outlook for the Indian economy and inflation have further enhanced investor sentiment.
Experts also predict a rebound in India’s GDP, potentially leading to stronger fourth-quarter earnings for 2025.
Investor sentiment towards India remains fundamentally positive. The nation is increasingly viewed as a long-term growth narrative, supported by robust digital infrastructure, ongoing economic reforms, favorable demographics, and rising consumption capacity, stated Mahendra Patil of MP Financial Advisory Services.
The banking sector has emerged as one of the top performers, with a 3,709-point gain, or 7.70 percent, in just six trading sessions. The index is already trading above its 2025 opening level of 50,860.
The broader markets have outperformed the key indices, with the BSE Small-Cap index climbing over 9.60 percent in the last six sessions and the BSE Mid-Cap index increasing by 8.30 percent.
As of mid-day, 540 BSE-listed stocks reached their circuit limits, with 328 hitting the upper circuit and 212 hitting the lower circuit. Furthermore, 80 stocks achieved a 52-week high, while 81 stocks fell to a 52-week low.
