Mumbai (Maharashtra) [India]: The Indian stock markets continued their strong upward momentum for the second consecutive week, driven by robust foreign portfolio inflows (FPI) and improving domestic economic indicators.
The benchmark indices opened on a strong note on Monday, reflecting positive investor sentiment:
- Nifty 50 opened at 23,515.40, gaining 165 points (0.71%).
- BSE Sensex surged 550 points (0.72%) to open at 77,456.27.
This rally follows a stellar performance last week, where both indices posted gains of over 4%, marking their best weekly performance in four years.
Global and Domestic Economic Factors
Experts have noted ongoing global economic and geopolitical uncertainties, including:
- The ongoing war in Europe.
- Rising tensions in the Middle East.
- A brewing Cold War with China.
Adding to the volatility, U.S. President Donald Trump has declared April 2nd as “Reciprocal Tariffs Day”, signaling a more aggressive trade stance, which could impact global trade flows.
Despite these global headwinds, India’s domestic economy has shown strong signs of recovery, particularly due to government-led infrastructure spending, which has surged from ₹20,000 crore per month (mid-2024) to ₹90,000 crore per month in December and January.
Market Expert Insights
Ajay Bagga, Banking and Market Expert, highlighted the factors driving India’s stock market surge:
“India stood out last week, seeing a sharp rise in benchmark indices and a sharper rise in broader indices. FPIs turned net buyers after many months. The economy is recovering, and government infrastructure expenditure has strongly rebounded over the last three months.”
He also pointed out the RBI’s recent monetary policy moves, including:
- First interest rate cut in five years.
- Injecting stabilizing liquidity.
- Easing capital constraints on lending.
These measures have increased the attractiveness of fresh investments into Indian markets.
Sectoral Performance and Market Outlook
Among sectoral indices, the Nifty Realty index recorded the highest gains, followed by:
- Nifty IT (+0.66%)
- Nifty Media (+0.88%)
Top Gainers and Losers (Nifty 50 Index)
Top gainers: L&T, Power Grid, NTPC, Kotak Bank.
Top losers: Dr. Reddy’s, Ultratech Cement, Tata Consumers, Titan, Cipla.
Technical Market Trends
Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, provided a technical outlook:
“Sensex and Nifty have risen over 4% in the last week, marking their best gain in four years. The surge is driven by factors like a rising rupee, halt in FPI outflows, oil price stability, and a dovish Fed stance. If Nifty breaks above 23,350, the uptrend could continue, and a breakout above 23,800 would confirm a strong bullish trend.”
With stabilizing global oil prices, renewed FPI interest, and a supportive RBI policy, Indian stock markets are positioned for further gains in the coming weeks.