What’s Driving the Sensex and Nifty Surge Over 1%?
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Synopsis
The Indian stock markets made a remarkable recovery today, with both the Sensex and Nifty indices surging significantly, fueled by positive global cues and robust buying in the IT and FMCG sectors. Discover how global market dynamics and sector-specific performances are shaping investor sentiment.
Key Takeaways
- Sensex increased by 953 points, reaching 81,905.
- Nifty rose by 299 points, peaking at 24,909.
- Major stocks like Eicher Motors and Infosys saw gains of up to 4 percent.
- Asian markets contributed positively to the Indian market sentiment.
- Lower U.S. treasury yields boosted investor confidence.
Mumbai, May 23 (NationPress) The Indian stock markets experienced a significant recovery on Friday, with both the Sensex and Nifty showing impressive gains during intra-day trading after a slow start. This upward movement was fueled by favorable global signals and substantial purchasing in the IT and FMCG sectors.
The Sensex surged by 953 points, which is a 1.17 percent increase, reaching an intra-day peak of 81,905. Concurrently, the Nifty soared by 299 points, marking a 1.21 percent rise, exceeding the 24,900 level and hitting a high of 24,909 early in the session.
As the trading session continued, the market gave back some of its initial advances. By around 1 p.m., the Sensex was recorded at 81,800.85, still reflecting an increase of 848.86 points or 1.05 percent.
Similarly, the Nifty maintained a positive stance at 24,887.80, rising by 278.10 points or 1.13 percent.
Leading the charge were stocks such as Eicher Motors, ITC, Infosys, Tech Mahindra, and HCL Technologies, which saw increases of up to 4 percent during intra-day trading.
Asian markets were also on an upward trajectory, creating a favorable backdrop for Indian stocks.
Key indices like South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai Composite, and Hong Kong’s Hang Seng all recorded gains.
In the United States, stock futures showed a positive trend in early trading, lending further support to global markets.
On the previous day, U.S. markets experienced volatility but ultimately closed higher, influenced by a decline in treasury yields.
The yield on 10-year U.S. treasury notes fell to 4.53 percent, a decrease of 7 basis points, while the 30-year yield also dropped from its peak levels since 2007.
This decline in yields followed the U.S. House of Representatives' passage of a significant tax and spending bill, which enhanced investor confidence.
Technology stocks led the surge in India following a bullish report from brokerage firm Bernstein.
This report indicated that the Indian IT sector is poised for a turnaround, buoyed by stable demand and increased deal activity.
According to the findings, IT companies are expected to see improved earnings in the current financial year, with optimistic guidance anticipated to bolster strong revenue growth by FY27.
Point of View
The current market rally reflects a robust recovery in investor sentiment, particularly in the IT and FMCG sectors. This bounce back, driven by positive global signals, highlights the resilience of the Indian economy amidst fluctuating international markets. It is crucial for investors to stay informed and agile in this dynamic environment.
NationPress
26/07/2025
Frequently Asked Questions
What drove the recent surge in the Sensex and Nifty?
The recent surge in the Sensex and Nifty was primarily driven by positive global cues and significant buying activity in the IT and FMCG sectors.
How much did the Sensex and Nifty rise?
The Sensex rose by 953 points, or 1.17 percent, while the Nifty increased by 299 points, or 1.21 percent.
What stocks are leading the gains?
Leading the gains are stocks like Eicher Motors, ITC, Infosys, Tech Mahindra, and HCL Technologies, with increases of up to 4 percent.
How did global markets influence Indian equities?
Positive performance in Asian markets and rising U.S. stock futures provided additional support, setting a favorable tone for Indian equities.
What are the expectations for the IT sector?
Reports suggest that the Indian IT sector is likely to see a turnaround, supported by stable demand and improved earnings forecasts.
