Indian Equity Markets Surge: A Remarkable Rebound Amidst Renewed Investor Interest

Indian equity markets have rebounded, with Sensex and Nifty rallying due to returning foreign investors, bargain hunting, and favorable US Fed signals. The Sensex gained over 4,150 points in six days, supported by better valuations and domestic growth revival. Experts attribute this to positive global cues and increased government spending.

Indian equity markets have staged a resilient comeback, reversing this year's earlier losses. Both the Sensex and Nifty extended their winning streaks for a sixth consecutive day on Monday. Market analysts highlight the return of foreign investors, bargain hunting, and improved valuations as significant factors supporting the rally.

Satyajit Ray, an experienced analyst at Lemonn Markets Desk, emphasized that foreign investors have resumed active participation following months of selling, aligning with new projections for two rate cuts by the US Federal Reserve in 2025. The benchmark indices have shown impressive gains, with the Sensex jumping 4,155.47 points and the Nifty by 1,261.15 points over recent sessions.

Shifted investor sentiment, sparked by domestic growth revival and increased government spending, has played a pivotal role in this market resurgence. In addition to positive global cues, the softer US dollar and hints of flexibility in US trade tariffs further bolstered investor enthusiasm, sparking a broader rally across most BSE sectoral indices.

(With inputs from agencies.)