Indian equity markets staged a powerful rally, with benchmark indices posting sharp gains amid supportive global and domestic cues. The BSE Sensex surged about 2,900 points to close around 77,500, while the Nifty 50 climbed nearly 870 points to settle close to the 24,000 mark, marking one of the strongest single-day performances in recent times.
The surge was driven by improved global sentiment after signs of easing geopolitical tensions, particularly a temporary pause in conflict in the Middle East. This development helped calm investor nerves and triggered buying across global markets, including India.
A key factor supporting the rally was the decline in crude oil prices. Since India is a major oil importer, softer crude prices reduce inflationary pressure and improve macroeconomic stability, making equities more attractive to investors.
Domestically, the Reserve Bank of India’s latest monetary policy also reassured markets. The central bank kept interest rates unchanged and maintained a balanced outlook on growth and inflation. This signalled policy stability, encouraging investors to increase exposure to equities.
The rally was broad-based, with strong buying seen across banking, financials, auto and real estate stocks. Banking stocks led the charge, supported by stable interest rate expectations, while auto and realty sectors gained on improved demand outlook. Midcap and smallcap stocks also outperformed, rising sharply and reflecting strong participation beyond frontline indices.
Several heavyweight stocks contributed significantly to the upward move, with industrial, consumer and metal stocks posting notable gains. Positive business updates and sectoral tailwinds further boosted investor sentiment.
The sharp rise also led to a substantial increase in investor wealth, with overall market capitalisation of listed companies jumping significantly in a single session. At the same time, the Indian rupee strengthened against the US dollar, indicating renewed foreign investor interest.
Also Read: Anthropic signs long-term AI chip deal