Indian Stock Markets Soar Amid Positive Economic Trends

Indian stock markets rallied, fueled by economic optimism and global sentiment. Nifty 50 and BSE Sensex saw gains over 1.3%. Market uplift driven by government expenditure, positive GDP, and RBI's interest rate cuts. Analysts project market strength to continue.

Indian stock markets experienced a substantial rally on Monday, spurred by favorable economic indicators and an optimistic global sentiment. The prominent indices, Nifty 50 and BSE Sensex, closed with gains exceeding 1.3%.

The Nifty 50 index rose by 307.95 points, equating to a 1.32% hike, ending at 23,658.35, while the BSE Sensex climbed 1,078.87 points, more than 1.4%, settling at 77,984.38. Market analysts attribute this surge to increased government capital expenditure, robust GDP growth, and stable trade conditions.

Ajay Bagga, a banking and market expert, credited the market's rise to several factors, including the RBI's interest rate cuts, which were part of a three-pronged approach to stimulate credit growth. He noted improved market valuations since their peak in September 2025 and the role of global factors in bolstering investor confidence.

Nifty PSU Bank stocks emerged as strong performers, advancing over 3%, complemented by gains in Nifty IT, Realty, and Oil & Gas sectors. Akshay Chinchalkar of Axis Securities highlighted the interplay of global and domestic elements driving Monday's market rally. He emphasized expectations of milder global tariffs and hopes of domestic earnings stabilization.

Leading Nifty 50 gainers included Kotak Bank, NTPC, and SBI, while IndusInd Bank and Mahindra & Mahindra lagged. On the global stage, foreign portfolio investor activity is shifting favorably towards India, enhancing the market landscape. Analysts foresee sustained market strength, buoyed by improved economic conditions and governmental support.

(With inputs from agencies.)