Sensex Reclaims 75,000 Mark, Nifty Soars Above 22,750 Amid Global Optimism

Indian Stock Market Surges as Investors Seek Bargains Post-Correction

Mumbai: The Indian stock market experienced a sharp rally on Tuesday as benchmark indices Sensex and Nifty rebounded strongly, driven by favorable global market trends, renewed investor confidence, and value buying after the recent correction.

The BSE Sensex surged 900.69 points or 1.21 percent, reaching an intraday high of 75,070.64, marking a significant recovery from recent declines. Meanwhile, the NSE Nifty climbed 265.1 points or 1.17 percent to touch 22,773.85, reflecting a broad-based buying spree.

The rally was supported by gains in major banking, infrastructure, and consumer-driven stocks, as investors capitalized on lower valuations following last week’s corrections. Market sentiment was further buoyed by strong global equity performance, macroeconomic improvements, and optimism surrounding China’s economic stimulus.

Stocks Leading the Rally

The market saw ICICI Bank, Zomato, Mahindra & Mahindra, Tata Motors, Larsen & Toubro, Hindustan Unilever, Power Grid, and Adani Ports among the biggest gainers of the session.

The Nifty Bank index also witnessed a substantial rise, trading above 49,000, signaling strong buying interest in the banking sector. The overall positive sentiment encouraged fresh investments, particularly in large-cap and blue-chip stocks, as traders sought to capitalize on lower stock prices after recent dips.

Top Drivers Behind the Market Rally

1) Positive Global Market Trends Fuel Optimism

Indian markets took strong cues from global peers, with major international indices reflecting bullish sentiment. On Wall Street, major indices extended their gains for the second straight session on Monday:

• Dow Jones Industrial Average jumped 353.44 points or 0.85 percent, closing at 41,841.63.
• S&P 500 climbed 36.18 points or 0.64 percent, ending at 5,675.12.
• Nasdaq Composite advanced 54.58 points or 0.31 percent, settling at 17,808.66.

The strength in US equities was largely driven by solid corporate earnings, easing recession fears, and expectations of a stable interest rate regime by the Federal Reserve.

Meanwhile, Asian markets mirrored the upbeat trend, with indices in Tokyo, Seoul, Shanghai, and Hong Kong trading in the green, adding to the overall optimism in the Indian market.

2) Bargain Buying After Market Correction

The recent market correction had created attractive entry points for investors, leading to across-the-board buying. The Nifty Bank index surpassing 49,000 was a key indicator of renewed interest in financial stocks.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “Broad indications suggest that the market has bottomed out, though further corrections cannot be ruled out. Investors are seeing this as an opportunity to accumulate quality stocks at lower valuations.”

3) Strong Domestic Macroeconomic Indicators

Favorable macroeconomic trends provided a further boost to investor confidence:

• India’s trade deficit fell to its lowest level in three and a half years, alleviating concerns about external imbalances.
• GDP growth for Q3 FY25 rebounded to 6.2 percent, signaling sustained economic resilience.
• Industrial output (IIP) recorded a 5.1 percent rise, reflecting a strong manufacturing recovery.
• Gross tax collections increased 16 percent, indicating robust government revenue generation.
• Retail inflation declined to 3.6 percent, easing concerns over monetary policy tightening.

These positive macroeconomic signals reinforced expectations of stable economic growth, further encouraging investors to take long positions in the market.

4) Strengthening Rupee Adds to Market Confidence

The Indian rupee appreciated by 10 paise, reaching 86.71 against the US dollar in early trade. This follows Monday’s session where the rupee gained 24 paise to close at 86.81.

A stronger rupee typically benefits foreign investors, reducing concerns about currency-related losses and making Indian equities more attractive to overseas buyers. Additionally, strength in the Asian currency basket supported positive sentiment in the forex market.

5) China’s Economic Stimulus Spurs Buying in Metal Stocks

China’s latest stimulus measures aimed at boosting domestic consumption and industrial activity had a spillover effect on Indian markets.

Key developments in China that supported market sentiment included:

• Higher-than-expected retail sales growth in China, indicating increased consumer spending.
• Fixed asset investment growth, reflecting stronger economic expansion.
• Rising demand expectations for industrial metals, leading to a surge in Indian metal stocks.

Domestic metal manufacturers gained significantly amid hopes of increased exports to China and a global commodity demand recovery.

Technical Outlook for Nifty and Sensex

Market analysts pointed out that technical indicators suggest further upside potential, despite resistance at key levels.

Anand James, Chief Market Strategist at Geojit Financial Services, noted:

“The upside momentum continues as anticipated, despite resistance at 22,580. The piercing candle formation supports further gains, with an initial target of 22,750, while downside support is now placed at 22,470.”

Traders and investors are keeping a close eye on these levels, with many expecting Nifty to consolidate above 22,750 in the coming sessions.