Indian Stock Market Rebounds with Nearly 2% Gains, Experts Maintain Positive Outlook
After three weeks of consecutive losses, the Indian stock market staged a robust recovery, closing the week with nearly 2% gains. This positive momentum was driven by favorable global and domestic cues, boosting investor confidence.
Mumbai: After three weeks of consecutive losses, the Indian stock market staged a robust recovery, closing the week with nearly 2% gains. This positive momentum was driven by favorable global and domestic cues, boosting investor confidence.
Indian Market Recovers with Strong Gains
The Nifty 50 index settled at 22,552.50, while the Sensex closed at 74,332.58, marking a significant rebound. The market’s recovery came after a period of losses, with experts attributing the rally to several key factors both domestically and globally.
Table of Contents
Global and Domestic Factors Drive Market Sentiment
According to market experts, global sentiment played a pivotal role in the market’s recovery. The improvement in global financial markets was fueled by reports of a delay in US tariffs and the potential for further negotiations, which helped stabilize market conditions. Additionally, a weaker US dollar and declining crude oil prices further bolstered investor confidence.
On the domestic front, the Reserve Bank of India’s (RBI) decision to infuse additional liquidity into the financial system provided further support, leading to a broad-based rally across multiple sectors.
Sector-Wise Growth Led by Metal, Energy, and Pharma Stocks
Ajit Mishra, SVP of Research at Religare Broking Ltd., highlighted that the rally was broad-based, with metal, energy, and pharmaceutical stocks emerging as the top gainers. The broader indices also posted impressive gains, with increases ranging from 2.6% to 5.5%.
Market Recovery Driven by Broad-Based Rally and Stabilization
Krishna Appala from Capitalmind Research noted that the market strength was driven by a broad-based recovery, with the Nifty 50 stabilizing near fair valuations. Mid and small-cap stocks also saw continued buying activity following recent corrections. Appala added that large-cap stocks are well-positioned, with the Nifty 50’s P/E ratio below 20x, in line with historical norms.
Also Read: Section 87A Rebate Confusion: Why Taxpayers with Capital Gains Are Receiving Notices
He further emphasized that corporate balance sheets remain strong, and with 10-12% YoY earnings growth expected, the market is likely to maintain stability in the near term.
Sustained Market Rally Depends on Earnings Recovery
Experts suggest that while large-cap stocks appear well-positioned, the broader market may consolidate unless earnings growth picks up. Sustaining the rally will depend largely on the recovery of earnings and the overall sentiment in the market.
Outlook for the Upcoming Week
Looking ahead to the upcoming trading week, which will be shortened due to a holiday, market participants are expected to keep a close eye on global developments. Key factors to watch will include updates on US tariff negotiations, geopolitical tensions, and the impact of these factors on the US dollar and crude oil prices.
Given the prevailing scenario, experts advise investors to maintain a positive yet cautious approach as they navigate the market’s performance in the coming week.
A Positive Yet Cautious Approach for Investors
With favorable global and domestic cues driving the Indian stock market’s recovery, experts suggest that investors should stay optimistic while keeping a close watch on ongoing developments. The market’s performance in the upcoming weeks will depend on earnings growth and external factors such as geopolitical risks and commodity price fluctuations.
