Sensex, Nifty 50 rise for 4th consecutive session; investors earn ₹4 lakh crore— 10 key highlights

Indian equity markets extended their bullish streak for the fourth consecutive session on Monday, buoyed by sustained foreign inflows, easing inflation expectations, and a steady policy outlook from the Reserve Bank of India (RBI). The benchmark BSE Sensex surged over 300 points while the Nifty 50 reclaimed the 23,250 level, adding significant value to investors’ wealth.

The upbeat sentiment resulted in a massive ₹4 lakh crore increase in overall market capitalisation, indicating strong investor confidence following the recent general election results and RBI's status quo on rates.

Market Snapshot: Fourth Day of Gains

The Sensex closed at 76,650.59, up 317.72 points or 0.42%, while the Nifty 50 settled at 23,259.20, advancing 83.65 points or 0.36%. This marks the fourth straight session of gains for the frontline indices, highlighting sustained buying interest across sectors.

10 Key Highlights of the Market Rally

1. ₹4 Lakh Crore Wealth Addition
   Investors' wealth saw a significant boost as the total market capitalisation of BSE-listed companies surged by ₹4 lakh crore in a single trading session.

2. Auto and Banking Stocks Lead the Rally
   Auto stocks such as Mahindra & Mahindra and Tata Motors posted strong gains, alongside banking majors like HDFC Bank and ICICI Bank.

3. Positive Global Cues
   Global equity markets were largely in the green, offering support to Indian indices. Optimism over potential rate cuts by the US Federal Reserve in the coming quarters also fueled buying sentiment.

4. Strong FII Inflows
   Foreign Institutional Investors (FIIs) remained net buyers for the fifth consecutive session, injecting confidence into Indian equities.

5. RBI Policy Confidence
   The RBI’s recent monetary policy, which maintained the repo rate at 6.50%, was seen as a stable and growth-supportive stance by market participants.

6. Volatility Index Drops
   India VIX, the volatility gauge, declined nearly 4%, reflecting reduced anxiety among investors and a preference for risk-on assets.

7. Broader Market Participation
   The BSE Midcap and Smallcap indices outperformed the benchmarks, rising 0.8% and 1.1% respectively.

8. Sectoral Indices in the Green
   Key sectoral indices, including Nifty Auto, Nifty Bank, and Nifty Realty, closed with notable gains. Nifty PSU Bank index surged over 1.5%.

9. Technical Strength
   Analysts pointed out that Nifty 50 has now comfortably crossed its key resistance at 23,200, paving the way for fresh upside toward 23,400–23,500 levels.

10. Corporate Earnings and Monsoon Outlook
    Strong earnings from auto and FMCG companies, coupled with early signs of a normal monsoon, are providing additional macro support.

Expert Commentary

“Indian markets have entered a phase of post-election consolidation followed by gradual upside. The fact that both FIIs and domestic institutions are buying into this rally shows strength and conviction,” said Ajay Bagga, Market Expert and former Fund Manager.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, added, “Technically, the Nifty is holding above 23,200, and this breakout can extend the rally toward the 23,500 zone. Support remains near 23,050.”

What’s Driving the Optimism?

• Macro Stability: With inflation largely under control and GDP growth projected at 7.2% for FY26, India’s macroeconomic fundamentals are encouraging.

• Political Continuity: The formation of a stable coalition government post-election has alleviated policy-related uncertainties.

• Monsoon Prospects: The India Meteorological Department (IMD) predicts a normal monsoon, which could support rural demand and reduce inflation risks.

Investor Outlook: What Lies Ahead?

As the market scales fresh highs, retail and institutional investors are advised to remain selective while deploying fresh capital. Analysts suggest focusing on quality stocks in banking, auto, infrastructure, and consumption sectors.

“While the rally is broad-based, we expect some profit-booking at higher levels. Hence, investors should look for dips to enter high-conviction stocks rather than chase momentum blindly,” said Mehul Kothari, AVP – Technical Research, Anand Rathi Shares.

The Indian stock market’s fourth day of gains reflects broad investor confidence backed by strong domestic fundamentals and global support. With over ₹4 lakh crore added to investors’ wealth in just one session, the bulls clearly have the upper hand—for now. However, market participants are keeping a close eye on global central bank actions, crude oil prices, and domestic monsoon patterns for further cues.