India’s benchmark indices surged with the Sensex gaining over 400 points and Nifty breaching 24,600, fueled by robust metal and healthcare stocks as global optimism and key geopolitical talks lifted investor confidence. The rally reflects expectations of Federal Reserve easing following cooling U.S. inflation data.
Sector-Wide Momentum Drives Gains
All sectoral indices traded positively, led by auto, metal, and pharma—each rising approximately 1%. Nifty Metal outpaced peers with a 1.57% jump, indicating revived industrial demand. “Short positions have built up significantly,” noted Dr. V.K. Vijayakumar of Geojit Financial Services. “A sentiment shift could trigger short covering and accelerate upside.”
Standout Performers and Midcap Strength
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- Top gainers: Apollo Hospitals (up ~5%), Hindalco, Hero MotoCorp, and pharma leaders Cipla/Dr. Reddy’s
- Earnings boost: NMDC Steel soared 12% post-Q1 results; AIA Engineering reported 17.5% profit growth
- Broader momentum: Midcap and Smallcap indices climbed 0.5–0.65%, exceeding benchmarks
The advance in metal and healthcare stocks signals fund rotation into cyclical assets ahead of manufacturing data. Meanwhile, energy major ONGC contributed to index gains amid stable oil prices.
Global Catalysts and Forward Outlook
Asian markets echoed the optimism as softer U.S. price pressures revived rate-cut bets, easing currency pressure on emerging economies. With India’s rally extending its July rebound, analysts watch for sustainability cues from corporate earnings and central bank moves. As positive global cues align with domestic institutional buying, market breadth may widen—though valuations leave limited room for error. The BSE Smallcap’s resilience, highlighted in broader markets, underscores persistent retail participation.
