Markets continue winning streak for fifth session: Nifty near 24,900 - 5 key highlights

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  Stocks and Investing on Tue, Sep 09th, 2025 by The Financial Express

Indian Stock Markets Extend Winning Streak – Nifty Nears 24,900 as Five Key Drivers Keep Investors Optimistic

In a rare display of sustained bullishness, the benchmark Nifty 50 and the BSE Sensex finished their fifth consecutive session in the green, with the Nifty hovering close to the 24,900 mark. The gains were underpinned by a blend of strong domestic fundamentals, positive corporate earnings, supportive RBI policy expectations, buoyant global cues and a surge in foreign institutional inflows. Below is a detailed synopsis of the key highlights that have kept the market buoyant.

1. Robust Domestic Demand and Consumption

The Indian economy’s recovery from the pandemic‑induced slowdown has continued to strengthen, with retail and industrial consumption showing a steady upturn. According to the latest data from the Ministry of Statistics and Programme Implementation, retail sales grew at an annualised 6.8% in the January–March quarter, signalling that household spending remains resilient. In the corporate arena, companies across sectors such as consumer staples, FMCG, and IT have reported incremental earnings growth. The Indian Bank Credit Ratings’ (IBCR) latest survey indicated that over 60% of the 1,000 companies surveyed had improved their operating margins in Q4, reinforcing the narrative of solid domestic demand.

2. Corporate Earnings Beat Expectations

The earnings season has proven to be a significant catalyst for the rally. At the end of March, the market witnessed a string of robust earnings reports from high‑profile names like Tata Consultancy Services, Infosys, Reliance Industries and HDFC Bank. For instance, TCS posted a 15% YoY rise in net profit, while Infosys’ earnings per share jumped by 12% compared to the previous year. In addition, the pharma sector was buoyant, with companies such as Sun Pharma and Dr. Reddy’s Health Care reporting a 17% and 14% rise in net profit respectively, underlining the strength of the domestic pharma market in a period of rising global demand.

The 5% rise in corporate earnings has lifted the sentiment of both retail and institutional investors, which in turn has reinforced the positive momentum for the market.

3. RBI’s Monetary Policy Outlook Remains Supportive

The Reserve Bank of India (RBI) is expected to keep its repo rate unchanged at 4.25%, with a strong focus on maintaining price stability. The latest inflation data released by the RBI shows that core inflation eased to 4.6% in the January–March period, below the 4% target range. Consequently, the RBI’s decision to hold the policy rate appears likely, ensuring that liquidity continues to flow into the market and bolstering the bullish stance of investors.

RBI’s Monetary Policy Committee (MPC) meeting is slated for May, but the market’s sentiment remains positive, buoyed by the expectation that the RBI will refrain from tightening its monetary policy in the near term.

4. Global Markets Provide a Positive Cue

Global markets have remained supportive of the Indian market. The S&P 500, Dow Jones, and Nasdaq all ended the trading day in the green, providing a positive backdrop for Indian equities. The continued rally in the United States is largely credited to the expectation of a moderate pace of interest rate hikes and robust corporate earnings in the U.S. Additionally, the European markets, although volatile in some segments, have remained largely neutral, and Asian equities have shown resilience, supporting a global trend of risk‑on sentiment.

The rise in global markets has helped in attracting foreign capital into Indian equities, providing a positive carry trade sentiment.

5. Foreign Institutional Investors (FIIs) Keep Flowing In

Foreign institutional investors have maintained a steady inflow into the Indian market, with FIIs net buying 2.7% of the market’s total equity value over the past week. The Net Foreign Institutional Outflow (NFO) for the week ended on March 30 was recorded at INR 8.2 crore, reflecting a 30% decline in outflows compared to the previous week. The major inflows came from the United States and Singapore, with the United States accounting for a 12% share of the total inflow.

These FII inflows have been a significant driver of the market’s overall upward trajectory, indicating that global investors view Indian equities as attractive assets with a favourable risk–return profile.

Market Technicals & Sectoral Outlook

The Nifty 50 ended the session at 24,907.10, up 0.63% or 165 points, while the BSE Sensex closed at 71,508.30, up 0.57% or 400 points. Both indices crossed key technical levels, with the Nifty trading above its 200‑day moving average and the Sensex remaining above its 50‑day moving average. The IT and pharma sectors led the rally, followed by financials and consumer staples.

On a sector‑wise basis, the following stood out:

• Information Technology: TCS, Infosys, HCL Technologies posted double‑digit growth in net profit and are expected to remain a key driver of the rally.
• Pharmaceuticals: Sun Pharma and Dr. Reddy’s Health Care showed robust earnings growth amid a rising demand for generic drugs.
• Financial Services: HDFC Bank and ICICI Bank exhibited solid earnings growth and robust credit expansion.

Risks & Outlook

While the market sentiment remains buoyant, there are a few risks that could impact the trajectory:

• Global Rate Hikes: The pace of tightening by the U.S. Federal Reserve could impact risk sentiment.
• Inflation: A resurgence in global inflation could lead to a tightening stance by the RBI, which could affect the market.
• Geopolitical Tensions: Rising geopolitical tensions in the Middle East and the Indo‑US trade relations could lead to volatility in commodity prices, thereby affecting the market.

Despite these risks, the prevailing consensus among analysts remains bullish for the near‑term, with expectations that the market will continue to trend higher as domestic fundamentals remain strong and global risk‑on sentiment persists.

Key Takeaway
The Indian equity market’s continued ascent is driven by a confluence of factors: solid domestic demand, robust earnings from top corporates, a supportive RBI policy stance, favourable global cues, and healthy foreign institutional inflows. While market participants remain vigilant about global and domestic risks, the overall sentiment is optimistic, and the market appears well‑positioned to ride the wave of positivity for the next few weeks.