Indian equity markets kicked off the week on a high note, with the BSE Sensex surging over 800 points and the NSE Nifty 50 breaching the 24,000 mark, driven by strong performances in the financial sector and renewed interest in mid- and small-cap stocks.
As of 10:40 AM IST, the Sensex climbed 0.79% to 79,166.69, while the Nifty 50 rose 0.82% to 24,047.15, marking their highest levels since January 6.
Key Drivers of the Rally
- Financial Sector Momentum: Major banks such as ICICI Bank and HDFC Bank reported better-than-expected earnings, with their stocks hitting lifetime highs, rising 0.9% and 1.3%, respectively.
- Foreign Investment Inflows: A weakening U.S. dollar, which slid to a three-year low, has made Indian equities more attractive to foreign investors, leading to increased equity purchases over the past three sessions.
- Broader Market Participation: Mid-cap and small-cap indices also saw gains, with the Nifty Midcap 100 and Nifty Smallcap 100 rising 1.6% and 1.1%, respectively, indicating widespread market optimism.
Sectoral Highlights
While the financial sector led the charge, other sectors like real estate, telecom, and healthcare also contributed to the rally. Infosys shares jumped 2.5% despite reporting weaker quarterly earnings, as analysts viewed the company’s FY2026 guidance as realistic.
Market Outlook
Analysts remain optimistic about the Indian market’s prospects, citing strong domestic fundamentals and favorable global conditions. However, they caution that continued vigilance is necessary, especially concerning global trade dynamics and currency fluctuations.
Investors are advised to stay informed and consider sectoral trends when making investment decisions in the current market environment.
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