Indian stock market’s momentous surge: Know key factors driving Nifty and Sensex

The Indian stock market continued its strong upward momentum on Monday, driven by expectations of a Reserve Bank of India (RBI) rate cut, sustained buying by domestic and foreign investors, and a positive global outlook on the Indian economy.

Indices Surge for Sixth Consecutive Session

The Nifty 50 opened higher at 23,515 and surged to an intra-day high of 23,650, marking a sharp 1,253-point gain (5.50%) over the last six sessions.

The Sensex also saw a strong opening at 77,456, reaching a day’s high of 77,897, reflecting a 4,069-point rise (5.45%) in six sessions.

Banking Sector Leads the Rally

Banking stocks were among the top performers:

Bank Nifty opened at 50,982 and peaked at 51,769, gaining 3,709 points (7.70%) in just six trading sessions.

The index is already trading above its 2025 opening level of 50,860.

Key Drivers of the Market Rally

Market experts attribute the rally to multiple factors, including:

RBI Rate Cut Expectations – Investors anticipate a policy rate cut following signals from the US Federal Reserve last week.

Stable Rupee & Strong Inflows – Consistent buying by Domestic Institutional Investors (DIIs) and Foreign Institutional Investors (FIIs) has strengthened market confidence.

Morgan Stanley’s Positive Outlook – The firm projects strong GDP growth, low inflation, and robust corporate earnings for India in 2025.

Broader Markets Outperform

Mid- and small-cap stocks have outpaced the benchmark indices:

BSE Small-Cap Index surged 9.60% in six sessions.

BSE Mid-Cap Index gained 8.30% over the same period.

Market Milestones

By mid-day, 540 BSE-listed stocks had hit their circuit limits, with 328 touching the upper circuit and 212 hitting the lower circuit. Additionally, 80 stocks reached a 52-week high, while 81 stocks fell to a 52-week low.

(With IANS Inputs)