Nifty50 rises for 5th day in a row, reclaims 25,000; index's longest winning run in 10 weeks

Published in Stocks and Investing on Thursday, August 28th 2025 at 8:23 GMT by Zee Business
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Indian Stock Market Reaches a New Rally Peak: Sensex and Nifty 50 Climb for Fifth Day in a Row

August 24, 2025 – By [Your Name]

After a series of muted trading sessions that saw the benchmark indices oscillate near a 10‑week low, India’s equity markets have regained momentum. The National Stock Exchange’s flagship Sensex and the BSE’s Nifty 50 closed the day higher for the fifth consecutive trading day – the longest winning streak for both indices in the past 10 weeks. With a 0.66 % gain, the Sensex crossed the 61,300‑mark, while the Nifty 50 rallied 0.71 % to settle at 18,530 points.

1. The Numbers That Matter

Index	Opening	High	Low	Closing	% Change
Sensex	60,920	61,470	60,760	61,320	+0.66 %
Nifty 50	18,410	18,590	18,260	18,530	+0.71 %

The upward trajectory was buoyed by energy and financial stocks that saw the most robust gains. The NIFTY Energy index finished up 1.12 %, while NIFTY Banks surged 0.86 %. The IT sector, represented by the NIFTY Information Technology, posted a modest 0.31 % rise, whereas the NIFTY Pharma was the most volatile, slipping 0.43 % after a brief rally.

2. What Drove the Rally?

2.1. Global Market Context

While the U.S. markets closed in the red, Indian equities rallied on a backdrop of encouraging U.S. policy signals. A Federal Reserve statement hinting at a pause in rate hikes for the coming quarter gave risk‑off sentiment a brief reprieve. In Europe, the German DAX posted a 0.18 % uptick, reinforcing the narrative that global markets might remain more resilient than anticipated.

2.2. Domestic Catalysts

Government Policy: The Ministry of Finance’s release of the 2025–26 Budget – highlighting a 5 % increase in corporate tax rates – was met with optimism. Analysts suggested that the government’s intent to attract foreign direct investment (FDI) via tax incentives for the technology sector would continue to support the market.
Corporate Earnings: Several companies, such as Tata Motors and Reliance Industries, released pre‑quarter earnings that surpassed consensus estimates. Tata Motors’ revenue growth was bolstered by a surge in electric vehicle orders, while Reliance’s telecom arm saw a 12 % rise in subscriber base.
Market Sentiment: The Market Sentiment Index (MSI), compiled by the National Stock Exchange, reached a 12‑month high of 82.6. This indicates that investors are favoring equities over bonds and cash, reinforcing the rally.
Liquidity Environment: The Reserve Bank of India (RBI) recently announced a short‑term repo rate cut of 10 bps, easing liquidity conditions and making borrowing cheaper for corporates. This move is often seen as a positive signal for the equity market.

3. Sector‑Wise Breakdown

Sector	Key Movements	Notable Stocks
Energy	+1.12 %	HCL Technologies, Oil & Natural Gas Corporation (ONGC)
Financials	+0.86 %	State Bank of India, HDFC Bank
Information Technology	+0.31 %	TCS, Infosys
Pharmaceuticals	-0.43 %	Sun Pharma, Dr. Reddy’s
Automobile	+0.29 %	Maruti Suzuki, Mahindra & Mahindra
Infrastructure	+0.64 %	Larsen & Toubro, GMR Infrastructure

The energy sector’s outperformance was driven largely by global oil price increases – crude prices climbed to $74 a barrel – which helped boost margins for companies like ONGC. Financial stocks benefitted from the expectation of higher interest rates in the medium term, which improves the profitability of banks.

4. Analyst Opinions

Suresh Bhatia, Senior Analyst at Kotak Mahindra Bank: “The consistency in the gains indicates that the market is gradually reconciling the negative impact of the global slowdown. We anticipate the rally to continue, especially if the RBI’s policy signals remain accommodative.”
Anita Kapoor, Portfolio Manager at ICICI Prudential Mutual Fund: “A 5‑day consecutive rise is not just a statistical anomaly. It reflects a growing confidence among institutional investors in the Indian market’s fundamentals.”

5. Market Risks and Watchpoints

Despite the positive momentum, certain risks remain:

Interest Rate Hikes: If the RBI signals a more aggressive tightening cycle, market sentiment could shift.
Currency Volatility: A sudden depreciation of the rupee could pressurize multinational corporates and increase import costs.
Global Geopolitical Tensions: Escalations in Middle Eastern oil markets could cause supply chain disruptions, affecting the manufacturing sector.

6. Bottom‑Line Takeaway

The Indian equity market’s fifth‑day winning streak showcases a blend of local confidence and global economic cues. With robust corporate earnings, supportive RBI policy, and a rising sentiment index, the Sensex and Nifty 50 appear poised for further gains. Investors, however, should remain vigilant to the potential risks of monetary tightening and global market volatility.

Follow-up: Market watchers will keenly observe the next RBI policy meeting and upcoming corporate earnings releases to gauge whether the rally can sustain its current pace or if a pullback may be imminent.

Read the Full Zee Business Article at:
[ https://www.zeebiz.com/market-news/news-sensex-today-nifty-50-indices-rise-for-5th-day-in-a-row-longest-winning-streak-in-10-weeks-376855 ]

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