Indian stock markets started Tuesday on a positive note, with both the Sensex and Nifty trading higher in early deals. Gains were fueled by growing optimism that the U.S. Federal Reserve may move towards interest rate cuts sooner than expected, a development that has lifted global equity markets.
The benchmark BSE Sensex opened over 300 points higher, while the NSE Nifty crossed the 25,000 mark in morning trade. Banking, IT, and metal stocks led the rally, supported by strong global cues and renewed buying interest from foreign institutional investors.
Analysts say the Fed’s dovish signals are improving risk appetite worldwide. Lower interest rates in the U.S. could encourage more capital inflows into emerging markets like India, making equities attractive relative to bonds. On the domestic front, stable macroeconomic indicators – including steady GST collections and easing crude oil prices – have also boosted investor confidence.
Sectors such as banking and financial services were among the top performers in early trading, with heavyweights like HDFC Bank, ICICI Bank, and Infosys contributing significantly to the Sensex gains. On the Nifty, metal stocks saw a sharp rebound on expectations of global demand recovery.
Market experts caution, however, that volatility may persist as investors continue to track U.S. inflation data and the Fed’s policy outlook. Domestically, quarterly earnings and government policy measures will play a key role in shaping near-term trends.
For now, the mood in Dalal Street remains upbeat, with traders eyeing further momentum if global liquidity conditions improve.
