Indian Stock Indices Surge Amid Global Trade Hopes

Indian stock markets rallied for a fifth consecutive day, buoyed by foreign investments and improved global trade prospects. The Sensex and Nifty posted gains, and BSE market capitalization topped USD 5 trillion. Analysts cite a softening USD and potential US-India trade deals as key positive factors.

Indian stock indices continued their upward trajectory, marking a fifth consecutive session of gains on Monday. Market experts suggest that the positive trend in Indian equities is expected to persist throughout the week, driven largely by consistent foreign investments and strong cues from global markets. The Sensex closed at a remarkable 79,408.50 points, registering an increase of 855.30 points or 1.09%, while the Nifty concluded at 24,125.55 points, up by 273.90 points or 1.15%.

The recent surge has propelled the market capitalization of BSE-listed companies back to the USD 5 trillion mark after a three-month hiatus. This growth in broader indices is attributed to several factors, including a softer US dollar and optimism surrounding global trade discussions, according to Vikram Kasat, Head of Advisory at PL Capital.

Indian stocks have been on an upward trend despite the global trade uncertainty triggered by the Trump administration's reciprocal tariffs and China's retaliatory measures. The decision by President Trump to pause tariffs on dozens of countries, including India, has added momentum to this rally. Additionally, India's retail inflation reached a 67-month low in March, providing further support to the stock indices.

The initial imposition of tariffs had led to a sell-off in global equities, and India was not immune. These tariffs had sparked concerns about trade tensions and a potential economic recession. However, India appears more resilient amid the global uncertainty, as it is among the few large economies capable of achieving a 6% growth rate even as the global economy slows. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlights the declining dollar and India's capacity to attract foreign portfolio investments as short-term strengths.

The prospect of India striking a favorable trade deal with the US in the coming months has further boosted market sentiment. From a short-term perspective, the market narrative currently favors India's prospects, Vijayakumar added. Since beginning his second term in January, President Donald Trump has reaffirmed his commitment to tariff reciprocity, ensuring that the US matches tariffs implemented by other nations, including India, to maintain equitable trade. (ANI)

(With inputs from agencies.)