Share Market News: On Tuesday, the Indian stock market showed tremendous growth, which increased the enthusiasm of investors, but also raised many questions. The last time the market gained similar momentum, the subsequent decline caused huge losses to retail investors. In just five months, a market valuation of Rs 90 lakh crore was wiped out. Due to the slowdown in the market before Holi, it seemed that the Sensex would fall to the level of 70,000, but the positivity of macroeconomic data revived it again. Now the Sensex has crossed the level of 75,000, raising new hopes in the market.
Tremendous rise in the stock market, Sensex and Nifty at new heightsThe Indian stock market performed brilliantly on Tuesday. The Sensex closed at 75,301.26, up 1,131.31 points (1.53%), while the Nifty closed at 22,834.30, up 325.55 points (1.45%). Companies in the financial, metal and auto sectors played a key role in this rally. Positive cues in overseas markets, strengthening of the rupee and strong macroeconomic data supported the market.
Performance of key sectors and stocks:- Zomato, ICICI Bank, Mahindra & Mahindra, Tata Motors and L&T stocks gained 2.7% to 7.4%.
- The finance sector rose 1.9%, Nifty Bank 2% and Nifty PSU Bank 2.3%.
- The metal index jumped 2.1%, with Hindalco Industries, Tata Steel, Hindustan Copper and Adani Enterprises gaining more than 2%.
- The auto index also saw a gain of more than 2%, with Tata Motors among the top 5 gainers of the Nifty 50.
- IRCON International gained more than 5%, due to securing a contract of Rs 10.96 billion from the Meghalaya government.
These 8 reasons led to the return of bullishness in the stock market1. Strength in global marketsThe strength in the US and Asian stock markets also affected the Indian markets. Hong Kong's Hang Seng index saw a gain of more than 2%, reaching a three-year high. Japan's Nikkei and other Asian markets also registered gains.
2. Support from China's stimulus measuresChina has implemented new policies to increase domestic demand, including childcare subsidies and special schemes to increase consumer spending. This has given great support to the metal sector.
3. Improvement in US retail salesInvestor sentiment turned positive due to the increase in US retail sales in February, reducing fears of recession and supporting the market.
4. Weak US dollarThe dollar index has come down about 6% from its January high, strengthening the rupee. This is making the Indian market attractive for foreign investors.
5. Strength in Indian rupeeThe rupee opened at 86.76 against the dollar, slightly better than the previous close of 86.80. This strength in the rupee has come due to the weakness of the dollar and the increasing inflow of foreign investment.
6. Reduction in global trade war concernsInvestors left behind the fears of global trade war and focused on attractive valuations, which strengthened the market.
7. Strong data of Indian economyGDP growth has reached 6.2% in the third quarter of FY 2025, industrial production (IIP) has increased by 5.1%, trade deficit has come down and inflation rate has come down to 3.6%. These factors strengthened the market.
8. Diplomatic efforts on Russia-Ukraine crisisThe market has received positive signals regarding possible ceasefire talks between US President Donald Trump and Russian President Vladimir Putin, which is expected to stabilize global energy prices.
Is this boom permanent or a bubble?Although the market is seeing a boom, investors need to be cautious. In 2023 also, the market fell sharply after a similar rally. Strong economic data and positive signals from global markets are behind the current boom, but uncertainty remains about geopolitical tensions and interest rates.
Experts believe that this time the boom can be permanent, provided the macroeconomic situation remains strong. But investors should be cautious and maintain portfolio diversification and avoid taking more risk.
ConclusionTuesday's rally has taken the Indian stock market to new heights, but given the previous decline, investors should not show overconfidence in this enthusiasm. This boom has come due to many strong reasons, but the market movement in the coming days will depend on global developments and the policies of central banks. Therefore, investing with caution will be the best solution.
