Indian Equities Extend Gains Amid Strong Economic Fundamentals
Indian stock markets continued their upward momentum for the fifth consecutive day, with the Sensex and Nifty indices trading marginally higher. The benchmarks were buoyed by strong economic fundamentals, including comfortable inflation levels and robust economic growth parameters. Firm global cues further supported the indices, as investors remained optimistic about the domestic economy's resilience.
At the time of reporting, the Sensex was up by 97.80 points or 0.12 per cent at 82,489.52 points, while the Nifty gained 31.20 points or 0.12 per cent to trade at 25,135.45 points. Sectoral indices such as Nifty auto, media, and oil and gas were among the top performers, whereas PSU, private bank, and consumer durables sectors witnessed a slight decline. International gold prices also saw an uptick, trading at USD 3,360 per ounce, up by 0.5 per cent.
Market experts suggest that the current rally is supported by liquidity, but caution that a sustained strong rally would require earnings support. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted, 'Market is likely to continue in the consolidation range with a slight upward bias. Liquidity will support a mild rally. But a strong rally needs earnings support.' This sentiment reflects the cautious optimism prevailing among investors, who are also awaiting clarity on the US-China trade deal discussions.
The Indian stock markets have outperformed global markets in recent weeks, amidst volatility spurred by potential US reciprocal tariffs. A comfortable inflation rate in India has provided additional support to the domestic equity indices. With the Sensex and Nifty accumulating significant growth over the past years, the focus now shifts to how earnings and global developments will shape the market's trajectory in the coming months.
