Sensex and Nifty Rally for Second Day, Gain Nearly 1% on Strong Global Cues Meta Description:

 

Markets Log Gains for Second Straight Day; Sensex and Nifty Jump Nearly 1% on Global Rally

The Indian stock market continued its upward momentum for the second consecutive day, with both the Sensex and Nifty rising nearly 1% in today’s session. The gains were largely driven by positive global cues, increased buying by institutional investors, and broad-based gains across sectors.

Key Highlights of Today’s Market Performance

·         Sensex closed up by over 700 points, marking a strong intraday recovery.

·         Nifty settled near the 25,250 mark, maintaining bullish sentiment.

·         Gains were led by IT, auto, banking, and metal stocks.

·         Positive sentiment in US and Asian markets fueled investor confidence.

1. Global Rally Lifts Market Sentiment

The rally in global equities has significantly influenced domestic sentiment. Strong performances in:

·         US markets, buoyed by expectations of rate cuts,

·         Asian indices, supported by economic recovery signs in China and Japan,
have boosted foreign investor interest in emerging markets like India.

2. FII Buying Continues

Foreign Institutional Investors (FIIs) were net buyers for the second day in a row. Their buying activity provided much-needed liquidity support and reaffirmed confidence in the Indian growth story.

3. Sectoral Gains Across the Board

Broad-based buying was seen across major sectors:

·         IT stocks rose due to easing recession fears in the US.

·         Auto and metal stocks gained on expectations of increased demand.

·         Banking stocks remained strong on improving credit growth and stable asset quality.

4. Technical Indicators Signal Strength

Technical analysts noted:

·         The Nifty remains above key support levels, suggesting sustained bullish momentum.

·         Indicators like RSI and MACD are showing positive trends, encouraging short-term traders.

5. Domestic Factors Supportive

·         Stable inflation numbers and strong GST collections have painted a healthy economic picture.

·         Anticipation of a reform-oriented Union Budget is also keeping investors optimistic.

Market Outlook

Analysts maintain a positive short-to-medium-term view. However, they advise caution ahead of:

·         US inflation data,

·         Central bank commentary,

·         Global geopolitical developments.

Still, India's strong macroeconomic fundamentals continue to support long-term bullish sentiment.

Conclusion                            

The Sensex and Nifty’s second-day rally, backed by global strength and sectoral support, reinforces the optimistic outlook for Indian equities. As long as global cues remain favorable and domestic macro indicators stay strong, the market is likely to maintain its upward bias.