Indian Stock Markets Extend Winning Streak to Six Days
Indian equities continued their upward momentum on Tuesday, marking a sixth straight day of gains as optimism over a potential US-China trade deal and strong domestic sentiment lifted benchmark indices to fresh record highs.
Sensex & Nifty Hit New Peaks
The S&P BSE Sensex surged 320 points (0.78%) to close at 41,580, while the NSE Nifty 50 climbed 87 points (0.71%) to 12,247. Both indices have gained over 4% in six sessions, marking one of the strongest rallies in recent months.
Analysts attribute the gains to easing global economic fears as US-China trade talks show signs of progress. Reports suggest both nations are nearing a Phase One deal, boosting investor confidence across Asian markets.
US-China Trade Optimism Fuels Rally
Recent statements from US and Chinese officials indicate progress on key issues like tariff rollbacks and agricultural purchases. US President Donald Trump tweeted that talks were “moving along well,” while Beijing hinted at a possible truce.
“The optimism around a trade deal is acting as a major catalyst for global markets, including India. A resolution could ease recession fears and restore risk appetite,” said Ajay Bodke, CEO at Prabhudas Lilladher.
Domestic Factors Supporting the Rally
- Strong corporate earnings
- Steady FII inflows (₹17,000 crore in November)
- Government stimulus measures, including corporate tax cuts
Sector-wise gainers: Banking, IT, and auto stocks led the charge, with HDFC Bank, ICICI Bank, and Reliance Industries contributing significantly to the Sensex rally. A weaker rupee (₹71.42/USD) also boosted IT heavyweights like Infosys and TCS.
FPIs Return to Indian Markets
After turning net sellers in October, Foreign Portfolio Investors (FPIs) have poured over ₹17,000 crore into Indian equities in November, driven by improved risk appetite and policy reforms.
“FPIs are returning to emerging markets as global uncertainty eases. India’s tax cuts and RBI rate reductions have reignited investor interest,” noted Vinod Nair, Head of Research at Geojit Financial Services.
What’s Next for Investors?
While the rally is strong, analysts warn of possible consolidation and suggest monitoring:
– US-China trade deal finalization (delays could spark volatility)
– Domestic economic data (GDP, IIP figures)
– RBI’s monetary policy (further rate cuts may sustain liquidity)
Retail Investors Advised to Stay Selective
Experts caution against speculative bets, urging focus on fundamentally strong stocks.
“Valuations in some sectors are stretched. Stick to quality stocks and avoid chasing momentum,” advised Shrikant Chouhan, Kotak Securities.
Conclusion
The rally remains bullish, but risks linger. Investors should stay alert to global and domestic cues while capitalizing on sustained FPI inflows.
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