Domestic equity markets opened the week with remarkable strength as both benchmark indices registered significant gains, reflecting positive investor sentiment across the board. At 10:33 am, the NSE Nifty50 was trading sharply higher by 171.25 points at 25,966.40, while the BSE Sensex advanced 575.03 points to reach 84,786.91. The buoyancy was not limited to the frontline indices; broader market gauges, too, showed a clear upward bias, signaling widespread optimism on Dalal Street. This rally came amid strong global cues and renewed confidence stemming from hopes of a potential trade agreement between the United States and India, which has further lifted market morale.
The ongoing surge in equities is being fuelled by a blend of global and domestic factors working in tandem. Analysts attribute much of the momentum to an improving international market environment. Global benchmarks such as the Dow Jones, Nikkei, and Kospi are hovering near record highs, setting a bullish tone across financial markets. According to Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, the international landscape has turned favorable with signs of easing trade tensions worldwide. He noted that recent statements by U.S. Treasury Secretary Scot Bessent, referring to a “substantial framework for trade negotiations with China,” have strengthened the belief that a resolution to U.S.–China trade frictions could be on the horizon. Such developments, he added, are likely to encourage greater risk-taking among investors, especially in emerging markets like India, which stand to benefit from the improved global trade climate.
On the domestic front, economic fundamentals are displaying encouraging signs of revival. The robust performance of the festival season, with stronger-than-expected sales across key sectors, suggests a resurgence in consumer demand. Simultaneously, private sector capital expenditure has shown a noticeable uptick after a long period of stagnation, reflecting growing confidence among businesses in the economic outlook. Dr. Vijayakumar observed that this shift marks an important inflection point for India’s growth story, indicating the beginning of a sustained recovery in both consumption and investment, which could have a long-lasting impact on market valuations.
Market experts believe that the current rally may continue in the short term, supported by favorable conditions and technical indicators. Anand James, Chief Market Strategist at Geojit Investments, remarked that there is still momentum left in the uptrend, driven in part by short covering and steady buying interest. He emphasized that both the Nifty and Sensex appear poised to scale new record levels if current sentiment persists. From a technical standpoint, analysts project that the Nifty could aim for a target of around 26,186, provided it sustains above the immediate resistance zone of 25,940–26,000. However, any failure to maintain that level might result in a mild corrective phase, possibly pulling the index back toward the 25,590–25,400 range.
For now, the broader mood on Dalal Street remains upbeat. Investors are drawing confidence from both the improving macroeconomic landscape at home and the easing uncertainties abroad. With strong institutional participation and rising optimism, the Indian stock market seems well-positioned to extend its gains, riding the wave of global positivity and domestic economic resilience.
