Stock Market Continues Its Winning Streak: Sensex & Nifty Close 1% Higher; Is the Worst Finally Over?

Stock market continued its bull run for the fourth consecutive session on Thursday, driven by a strong rally in IT stocks after the US Federal Reserve decided to keep interest rates unchanged at 4.25% - 4.50%. Both the benchmark indices opened on a strong note and held firm in positive territory throughout the session. Sensex and Nifty surged nearly 1.2%, supported by positive global sentiment, strong domestic economic data, and renewed investor confidence. As markets rebound after recent volatility, the key question remains: Is the worst over for the stock market? Let's take a look.

Stock Market Performance Today

The BSE Sensex opened at 75,917.11 this morning, and the index quickly gained momentum, reaching an intraday high of 76,456.25 before experiencing some volatility and touching a low of 75,684.58. The Nifty 50 opened at 23,036 and briefly dipped to an intraday low of 22,973 before strong buying interest pushed it to an intraday high of 23,216.

Sectoral Indices Rise: What's Driving the Rally in the Stock Market?

Since market saw an all-round rally today, all sectoral indices closed in positive territory. Telecom stocks led the surge, advancing by 1.94%, and auto, metal, media, IT, and consumer durables. FMCG, realty, and media also surged, similarly, he oil & gas sector rose 1.56%.

The broader market also witnessed major gains, with the BSE Midcap index advancing by 0.61% and the Smallcap index rising 0.73%.

Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity, said that "sectoral performance was broadly positive, with oil & gas, consumption, IT, automobiles, and consumer goods leading the gains. While all sectors closed in the green, these stood out with notable strength. The primary catalyst for today's rally was the Federal Reserve's decision to keep interest rates steady while signaling two potential rate cuts later this year, which fueled optimism across global markets. The US indices also gained, further boosting sentiment. In the broader Indian markets, the Nifty Midcap 100 and Nifty Smallcap indices witnessed strong gains, reflecting broad-based buying interest."

"From a derivatives perspective, long buildups were observed in Manappuram Finance, NCC, Tube Investments (TIINDIA), Exide Industries, and Vedanta (VEDL), indicating bullish sentiment. Meanwhile, short buildups were seen in Coal India, Policybazaar, KEI Industries, Polycab, and Sona Comstar, signaling weakness in these counters. Overall, the market sentiment remained bullish, driven by robust sectoral performance and favorable global cues, setting a positive tone for the upcoming sessions." Kewat Further Highlighted.

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Is the Worst Over for the Stock Market?

While today's rally is a positive sign, the market's future performance will depend on both global and domestic triggers. Investors should closely monitor the Q4FY25 earnings season, as corporate performance will play a crucial role in shaping market sentiment. Additionally, the US Federal Reserve's rate decisions will continue to impact Foreign Institutional Investor (FII) flows, influencing market direction.

Vinod Nair, Head of Research at Geojit Financial Services, noted that a consistent decline in the US dollar index (DXY) has reduced FII selling pressure, while Domestic Institutional Investor (DII) buying remains strong, fueling the recent uptrend. He also emphasized that supportive domestic data, indicating a month-on-month rise in economic activity, along with expectations of further rate cuts this year, has enhanced the appeal of equities. "The rally is expected to be sustained in the short term, with further direction dependent on Q4FY25 earnings in April," Nair added.

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