Why is the Indian Stock Market Rising For The 6th Straight Day?

The Indian stock market rising has extended its winning streak to a sixth consecutive session, with the BSE Sensex and NSE Nifty 50 each rising nearly 1% on March 24, 2025. The banking and energy sectors, along with optimism among foreign investors have contributed to this upward movement of the Indian market.

Market Performance

As of March 2025, the NSE Nifty 50 stood at 23,547.95, while the BSE Sensex reached 77,554.59. All 13 major sectors recorded gains, with small-cap and mid-cap stocks each advancing about 1.2%. ​

Sectoral Highlights

• Financials: The financial sector spearheaded the advancement with Kotak Mahindra Bank leading the surge at 2.6%, marking a new all-time high since its fall in October 2021. The private sector banks benefitted as the overall market climate improved, recording significant growth, contributing to the Indian Stock Market rising.

• Energy: The shares of GAIL and Gujarat State Petronet aided the increase in energy stocks as they rose by 5% and 2.5% in due time. These gains are related to expected changes in the gas transmission tariff regulation policy, further supporting the Indian Stock Market rising.
  

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Foreign Investment Inflows

The return of foreign portfolio investors(FPIs) as net buyers has almost single-handedly promoted new growth in the markets. They invested in Indian stocks worth ₹74.70 billion (around $868.3 million) on March 21, leading inflows in 4 months. This can lead to the Indian stock market rising after consistent selling down over the preceding 6 months.

Broader Market Trends

These past few weeks have seen the BSE MidCap index grow 1% and the smaller index over 2%, contributing to the overall strong bullish sentiment in smaller sector stocks. Oil and gas, power, and even healthcare and financial services have remarkably bolstered the economy, further proving the Indian Stock Market rising trend.

Investor Sentiment

The recent purchases with Foreign Portfolio Investments, coupled with short-covering activities, indicate a strengthening market trend. Short-covering refers to buying back shares instead of selling them to close a position that profits from falling stock prices, and with current FPI bearishness at 68%, there is room for improvement which can help sustain the markets.

Conclusion of Indian Stock Market Rising

The Indian stock market rising has resulted in a surge in investor confidence on the back of good performance in important sectors and renewed interest from overseas investors which has boosted the market for the last 6 days. As the market deals with factors both global and local, inflows may further help indexes reach new heights. In the short run, analysts predict improvement due to India’s strong economic fundamentals, the rise in corporate profits, and good policy support which offers the best business opportunities.

Yet, participants in the market will need to exercise some caution and be watchful of the changing global economy, things happening in Asia regarding Russia and Ukraine, and Central Bank monetary policy changes in Europe and the United States. While the current Indian stock market rising is giving hope, the investors need to have a wait-and-see mindset, weighing positives with negatives as they shift in this market.

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