Mumbai: Today, Indian benchmark indices enjoyed a strong rebound, driven by rising global markets and growing hopes of a U.S. Federal Reserve rate cut. At closing, the BSE Sensex gained 329 points (0.40 percent), ending at 81,635.91, while the NSE Nifty added 97.65 points (0.39 percent) to hit 24,967.75. Early in the day, both indices rose even higher-Sensex touched 81,799.06 and Nifty edged closer to 25,000.
IT Stocks Lead the Charge
A surge in IT stocks, especially those heavily tied to the U.S. market, played a key role in driving the rally. Broad optimism stemmed from comments by U.S. Federal Reserve Chair Jerome Powell, suggesting a possible rate cut in September, which greatly improved investor sentiment globally and enhanced the appeal of emerging markets like India.
Mixed Sector Performance
Major gainers from the Sensex pack included Infosys, TCS, HCL Tech, Tech Mahindra, Tata Motors, Sun Pharma, Maruti, and Titan. On the flip side, Bharat Electronics, Asian Paints, Bharti Airtel, and ICICI Bank lagged behind.
Global Markets Join the Rally
Asian markets mirrored the positive sentiment, with indices such as Kospi (South Korea), Nikkei 225 (Japan), SSE Composite (Shanghai), and Hang Seng (Hong Kong) closing higher. However, European markets opened on a weaker note despite strong cues from the U.S.
U.S. Market Momentum and RBI Commentary
The strong performance in India follows a rally in U.S. markets, where the Dow jumped 1.89 percent, Nasdaq climbed 1.88 percent, and S&P 500 gained 1.52 percent on Friday. This global upturn underpinned Monday’s positive opening in India, although concerns remain around trade and tariff developments.
As Vinod Nair, Head of Research at Geojit Investments, noted, “a wave of optimism swept through domestic markets” driven by Fed rate-cut expectations and supportive domestic factors such as GST rationalisation and a good monsoon, which have bolstered consumption and buoyed market sentiment.
