Indian Markets in Green

Indian benchmark indices opened the week with a sharp surge as investor sentiment was buoyed by multiple positive triggers, including India’s ascension to the position of the world’s fourth-largest economy.

Market Rally Backed by Strong Fundamentals and Global Cues

In the opening session, the BSE Sensex was up by 562.31 points to 82,283.39, and the NSE Nifty moved up 175.7 points to hit the 25,000 mark, to 25,028.85. Bullishness over India overtaking Japan as the world’s fourth-largest economy, as reported by NITI Aayog CEO BVR Subrahmanyam, lifted the rally.

Experts noted that this milestone, coupled with strong domestic macroeconomic fundamentals and supportive global cues, provided a much-needed morale boost to markets.

RBI’s Record Dividend and Early Monsoon Fuel Optimism

Supporting the positive sentiment, the Reserve Bank of India on Friday declared a historic record dividend of ₹2.69 lakh crore to the central government for the fiscal year 2024-25. It is 27.4% higher than the last fiscal and is likely to help the government cope with fiscal pressure and support a hike in spending on defence and infrastructure.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the bumper dividend could make the government achieve its FY26 fiscal deficit target of 4.4%, ensuring a low-inflation and lower interest rate phase would persist, conducive to equities.

In another positive news, the southwest monsoon hit Kerala on Saturday, itself eight days ahead of schedule, in the earliest onset in more than a decade since 2009. Analysts think this may have a positive impact on agricultural production and rural consumption in the coming months.

Global Markets, FII Buying, and Oil Prices in Focus

Global cues also remained favorable, with South Korea’s Kospi and Japan’s Nikkei 225 in the green, although Shanghai’s SSE Composite and Hong Kong’s Hang Seng were trading lower. In the US, markets closed in the red on Friday, but futures ticked higher following President Donald Trump’s decision to delay 50 percent EU tariffs to July 9. Wall Street remained shut on Monday for Memorial Day.

FIIs remained on a buying spree, purchasing Indian shares worth ₹1,794.59 crore on Friday. Brent crude was trading 0.32 per cent higher at USD 64.99 per barrel, keeping oil import concerns in check.

Sectoral Gains Led by Auto, Banking, and Tech Stocks

Among the gainers on the Sensex pack were Mahindra & Mahindra, Tata Motors, Titan, ICICI Bank, Tech Mahindra, NTPC, Power Grid, and Bajaj Finserv. Eternal was the sole loser among the 30-pack index.

Vikas Jain, Head of Research at Reliance Securities, commented that Indian markets have shown “greater resilience” compared to global peers, buoyed by macroeconomic strength and FII inflows.

Market Outlook

With strong domestic fundamentals, supportive monetary measures, and favorable weather conditions, the Indian equity market appears well-positioned for sustained momentum. Investor focus will now shift to upcoming economic data and global developments for further cues.

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