BSE Sensex and Nifty Surge, Driven by Banking Stocks and Foreign Fund Inflows

The BSE Sensex climbed by 643.33 points to hit an intraday high of 79,196.53, while the Nifty also saw a strong rally, rising by 184.35 points. The rally was primarily driven by strong performance in banking stocks like ICICI Bank, HDFC Bank, Axis Bank, and IDFC First Bank.

Banking stocks led the charge, with the Bank Nifty index touching a record high of 55,200. Positive earnings reports, lower savings deposit rates, and improved net interest margins (NIMs) are fueling investor optimism in the banking sector. Analysts have highlighted that private lenders’ quarterly results are aligning with market expectations, continuing to support the ongoing rally.

In addition, foreign portfolio investors (FPIs) resumed buying, injecting significant capital into the markets. The renewed FPI interest signals a potential shift in sentiment, backed by India’s improving growth outlook and a stable macroeconomic environment. This optimism was further supported by reports of a potential India-US trade agreement, which added to positive investor sentiment.

The Indian rupee also saw gains against the US dollar, appreciating by 33 paise, aided by falling global crude prices and strong domestic indicators. Analysts remain cautious but hopeful, with Nifty’s technical outlook indicating potential for more gains, especially if the market remains resilient against global pressures.

Overall, the rally in banking stocks, positive FPI inflows, and improved domestic sentiment suggest that the market could continue its upward momentum, barring any global uncertainties.

Key highlights:

• BSE Sensex and Nifty surge, boosted by banking sector performance.

• Record high for Bank Nifty, led by ICICI Bank, HDFC Bank.

• Resumed FPI inflows signal improving sentiment around India’s growth.

• India-US trade pact discussions add to positive outlook.

Do you believe banking stocks will continue to lead the market rally in the coming weeks?
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