On Thursday, October 16, the Indian stock market saw healthy gains for the second day in a row, with the Sensex and Nifty 50 each rising nearly 1%, boosted by positive global trends. The Sensex climbed over 700 points to reach an intraday high of 83,330, while the Nifty touched 25,544. Over two days, the Sensex gained around 1,300 points (1.6%), despite ongoing concerns about US tariffs and valuations.
Experts point to five key reasons for this rally: stable Q2 earnings results that met expectations without surprises, boosting confidence; growing optimism around an India-US trade deal amid renewed negotiations; foreign institutional investors returning as buyers after weeks of cautiousness; favorable macroeconomic factors like healthy growth and low inflation; and expectations of further RBI rate cuts, supported by the IMF’s improved growth forecast for India.
This combination of factors has eased market worries and fueled hopes for sustained earnings growth and stronger economic fundamentals ahead.
