Indian stock markets witnessed a strong rally on Thursday, with benchmark indices BSE Sensex and NSE Nifty 50 gaining more than 1 per cent amid improving global sentiment, hopes of policy support and strong corporate earnings.
The BSE Sensex jumped 789.74 points, or 1.06 per cent, to close at 75,398.72, while the NSE Nifty50 advanced 277 points, or 1.18 per cent, ending the session at 23,689.60. The sharp rise added over ₹4 lakh crore to the overall market capitalisation of BSE-listed companies, taking the total valuation close to ₹463 lakh crore.
Bond Tax Relief Hopes Lift Market Sentiment
Investor confidence improved after reports suggested that the government is considering a proposal to reduce taxes on bond investments made by foreign investors. The move is reportedly aimed at attracting overseas capital and aligning India’s taxation policies more closely with international standards.
According to reports, the recommendation was made by the Reserve Bank of India and is currently under review by the Finance Ministry.
Following the development, the rupee recovered from early losses and government bond prices strengthened. The benchmark 10-year bond yield eased by 2 basis points to 7.03 per cent, improving overall sentiment in financial markets.
Strong Earnings Support Market Momentum
Several major companies have reported solid March-quarter earnings, further supporting the rally. Global brokerage Morgan Stanley stated that India’s earnings cycle appears to be recovering after a prolonged slowdown over the past six quarters.
The brokerage highlighted government and RBI measures such as interest rate cuts, liquidity support and banking reforms as positive triggers for future growth. It also pointed to rising investments in sectors including defence, energy, semiconductors, fertilisers and data centres.
Global Markets Add To Optimism
Global market trends also remained supportive. South Korea’s Kospi surged nearly 2 per cent, while Hong Kong’s Hang Seng Index posted gains. European markets including France’s CAC 40, the UK’s FTSE 100 and Germany’s DAX also ended higher in the previous session.
On Wall Street, US markets closed firmly in positive territory, led by technology shares, with the Nasdaq gaining over 1 per cent.
Focus On US-China Talks
Investors are also closely monitoring high-level discussions between US President Donald Trump and Chinese President Xi Jinping as geopolitical tensions between the two countries continue to influence global trade and investment flows.
Market experts believe any positive developments from the meeting could improve global economic sentiment and support equity markets worldwide.
Rupee Weakness Remains A Concern
Despite the market rally, concerns remain over the sharp fall in the Indian rupee, which touched a fresh record low after breaching the 95.8 mark against the US dollar for the first time. The rupee has weakened around 1.4 per cent this week amid global uncertainty and sustained foreign fund outflows.
However, easing US Treasury yields provided some relief to equities, as lower bond yields often encourage investors to shift towards riskier assets like stocks.
Originally published on 24×7-news.com.
