Indian shares soar as Sensex, Nifty rebound

Henry Voizers
Shares Rebound

Indian benchmark indices, Nifty50 and Sensex, continued their upward trajectory for the fourth consecutive session, supported by positive performance in the banking and IT sectors. The Federal Reserve’s decision to maintain its outlook for rate cuts in 2025 has been positively received by global markets and led to optimism among investors. Strong performances by major IT firms contributed significantly to the overall market rally.

Positive trends in global markets provided further support to the uptrend in Indian shares. Favorable movements in the US Treasury and currency markets also played a role in today’s stock market gains.

India’s benchmark indices posted their best session in six weeks on Monday, driven by bargain buying and positive global cues.

The Nifty 50 rose significantly, marking a strong rebound as investors looked to capitalize on lower valuations following recent market downturns. Several sectors, including technology and financials, saw a surge as market sentiment improved globally. The positive movement came despite a backdrop of global uncertainty, showcasing the resilience and potential of the Indian stock market.

Indian stock markets look poised for a positive start, thanks to the US Federal Reserve holding firm on its rate-cut outlook, which is drawing investors amidst tariff-induced adjustments. The Fed’s steady stance on expected rate cuts is giving Indian markets a lift.

Indian stocks buoyed by global optimism

GIFT Nifty suggests the Nifty 50 index will open above its last close of 22,907.60, mirroring upbeat trends across other Asian markets, excluding China and Hong Kong. The Fed’s plan for two quarter-point cuts by year-end, alongside tariff-driven adjustments in inflation expectations, is attracting foreign investors. Lower US rates make Indian equities more appealing as they weaken the dollar and reduce Treasury yields, enticing investors who pulled nearly $17 billion out this year.

Meanwhile, domestic actions like Hyundai’s price increase and Wipro’s launch of new AI services highlight India’s economic vitality. The possibility of lower US rates boosts the appeal of Indian equities for global investors. As inflation expectations shift, Indian stocks gain favor among those who were wary of high valuations.

Keep an eye out for a recovery in mid-cap and small-cap indexes, which have dropped significantly from their highs. The Fed’s rate approach and tariff effects create a nuanced backdrop affecting investor actions worldwide. Indian firms like Wipro and Hyundai, as they adapt to evolving economic conditions, contribute to a dynamic interplay influencing both foreign investment and domestic economic strength.

The interaction between US policy and local developments, such as Mazagon Dock’s submarine advancements, underscores a vibrant economic ecosystem. Overall, the steady outlook from the US Federal Reserve, combined with positive domestic actions, sets a promising stage for the Indian markets as they open. Investors are advised to watch the developments closely, as they can have significant implications for market trends and investment opportunities.