Indian stock markets extended their winning streak for a fifth consecutive session on Monday, buoyed by sustained foreign investments and favorable global signals. Both key benchmark indices surged, with the Sensex closing at 79,408.50—up 855.30 points or 1.09%—while the Nifty ended at 24,125.55, gaining 273.90 points or 1.15%.
The bullish momentum helped the market capitalisation of BSE-listed firms climb back to the USD 5 trillion mark, a level last achieved three months ago. Analysts attributed the rally to a combination of domestic resilience and supportive international factors.
“A softer US dollar and optimism around progress in global trade talks have boosted investor confidence,” said Vikram Kasat, Head of Advisory at PL Capital.
The rebound comes despite continued global trade uncertainties, which had been triggered by the Trump administration’s imposition of reciprocal tariffs and retaliatory measures from China. Markets began stabilizing after the US temporarily suspended these tariffs for 90 days on several nations, including India—a move that eased some concerns over trade tensions and potential global economic slowdown.
Adding to the positive sentiment is India’s retail inflation, which dropped to a 67-month low in March. Lower inflation supports expectations of continued economic stability, thereby encouraging investment in equities.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “India remains relatively resilient despite global headwinds. It is among the few major economies capable of maintaining a 6% growth rate even in a decelerating global environment. Coupled with a weakening dollar, this environment is conducive for more foreign portfolio inflows into the Indian markets.”
He further added that the markets are optimistic about a potential trade agreement between India and the US in the coming months, which could further strengthen investor confidence.
Since beginning his second term in January, US President Donald Trump has reiterated his commitment to tariff reciprocity, asserting that the US will impose matching tariffs to ensure balanced trade practices. Despite the uncertainty, Indian equities have shown notable strength, underpinned by economic fundamentals and investor optimism.
With global cues turning favourable and India’s economic indicators showing promise, analysts believe the upward trajectory in Indian markets may persist in the near term.