Why is Indian stock market rising for seven straight sessions? Explained with seven crucial reasons

Stock market today: After rising in all trading sessions last week, the Indian stock market extended its gains this week also. After a marvellous Monday, frontline indices of Dalal Street opened upside during morning deals on Tuesday. The Nifty 50 index opened in the green at 23,751 and touched an intraday high of 23,869. While climbing to this intraday high, the 50-stock index extended the rally for the seventh day, recording a 1,472-point or around 6.55% rise in the last seven straight sessions.

Nifty 50, Bank Nifty turns green in YTD

After ending at 23,658 on Monday, the 50-stock index turned green in YTD by quoting above 23,644, Nifty's close on 31 December 2024. So, the 50-stock index will continue to trade positively in 2025.

Likewise, the BSE Sensex today opened higher at 78,296 and and touched an intraday high of 78,741. While climbing to this intraday high, the 30-stock index registered extended its rally for the seventh day in a row by gaining over 4,900 points or 6.65% in the last six trading sessions. By extending its gains for yet another session, the BSE Sensex turned positive in YTD by quoting above its 31 December 2024 close price of 78,139.

Banking stocks witnessed strong buying since the Opening Bell. The Bank Nifty index opened with an upside gap at 51,874 and and touched an intraday high of 52,063. Like the Nifty 50 and the BSE Sensex, the Bank Nifty index also gained for the seventh straight session by logging over 4,000 points, or a 8.30% rise in the last seven trading sessions. The Bank Nifty index is already trading green in YTD by quoting above 50,860, close on 31 December 2025.

However, the broad market witnessed some selling pressure in early morning session. The BSE Small-cap index was trading lower on Tuesday morning deals by around one per cent, while the Mid-cap index shed nearly 0.50%.

By 11:10 AM on Tuesday, 370 BSE-listed stocks had hit circuits, 180 of which touched the upper circuit, and 190 touched the lower circuits. Firty-nine BSE-listed stocks touched a 52-week high, while 76 BSE-listed stocks touched a 52-week low.

Why is the Indian stock market rising today?

On why the Indian share market is rising today, stock market experts said the RBI rate cut buzz after the US Fed meeting last week, buying by both DIIs and FIIs, and Morgan Stanley's strong outlook for the Indian economy and inflation are some of the major reasons fueling the Indian stock market for the last seven straight sessions. According to experts, a rebound in India's GDP is expected to trigger better Q4 results in 2025 on a sequential basis. They said that over six lakh new retail investors were added in the last week, which is also a reason for a sharp rally in the Indian stock market.

Stock market today: Top 5 reasons for rise in Nifty 50, Sensex

When asked about the top five crucial reasons fueling the Indian stock market today, stock market experts listed the following five reasons: buzz about the RBI rate cut, better Q4 results 2025, stable Indian rupee, DIIs and FIIs in stock shopping mood, and stable Indian inflation outlook. They said that the uptrend on Dalal Street may continue this week with some profit-booking triggers as most Indian stocks are available at attractive valuations.

1] Better Q4 results 2025: Highlighting the better Q4 results 2025 trigger, Avinash Gorakhkar, Head of Research of Profitmart Securities, said, “Signs of economic recovery are now visible as Fitch Ratings expects a pickup in capital spending over the next two financial years — FY26 and FY27." He said India's real Gross Domestic Product or GDP growth slowed to 5.4% in the July–September 2024 quarter before rebounding to 6.2% from October to December 2024. Hence, the market estimates better Q4 results in 2025 sequentially.

2] Buzz about RBI rate cut: Pointing towards the buzz about the RBI rate cut after the US Fed meeting last week, Avinash Gorakshkar of Profitmart Securities said, “In the guidance after last week's US Fed meeting, the market is expecting a rate cut in the upcoming RBI policy meeting in April 2025. As the possible RBI rate cut would ensure more liquidity in the market, Dalal Street investors are discounting on this through the strong buying.”

Highlighting the outcome of Morgan Stanley's report published last week, Gorakshkar said that India's consumer price index (CPI) inflation is expected to average 4% in FY26, paving the way for a cumulative 75 basis points (bps) rate cut by the RBI—an upward revision from the previously estimated 50 bps easing cycle.

3] Abundance of stocks at attractive valuations: Due to the availability of quality stocks, both DIIs and FIIs have initiated bottom fishing. Barring a few sessions in March 2025, DIIs continuously bought in the cash segment. By the end of Friday's session last week, DIIs had bought shares worth ₹30,788.19 crore in the cash segment, while FIIs remained net sellers by offloading Indian shares worth ₹15,412.13 crore. However, FIIs also started buying last week, buying Dalal Street-listed shares worth ₹5,819.12 crore in the cash market.

"We expect this upward momentum to continue on the back of the foreign institutional investors' return to the Indian market amid attractive valuations and signs of economic recovery," said Siddhartha Khemka, Head of Research — Wealth Management at Motilal Oswal.

4] Strong outlook for the Indian economy: According to the Morgan Stanley report published last Thursday, the Indian economy will be the third-largest in the world by 2028. The global brokerage has projected the Indian economy to grow from $3.5 trillion to $4.7 trillion in 2026, making it the fourth largest in the world behind the US, China, and Germany. Morgan Stanley has predicted that the Indian economy will trump the German economy by 2028 and become the third-largest economy in the world.

5] Stable Indian inflation: The Morgan Stanley report says lower trailing inflation, primarily due to easing food prices, has created space for additional rate cuts. The global brokerage firm expects India's CPI inflation to average 4% in FY26, compared to its earlier forecast of 4.3%. For the January to March 2025 quarter, the Morgan Stanley report now projects CPI inflation to average 4%, down from its prior estimate of 4.5%. The brokerage added that since the RBI targets headline CPI within a 2-6% range, the current trend provides ample room for further easing.

6] Stable Indian National Rupee (INR) fueling FIIs' buying: “Due to the stable Indian rupee, foreign investment, both portfolio and institutional, are expected to pick up. The recent trend reversal in the FIIs can be attributed to the Indian rupee gaining strength. So, the current rally in the Indian stock market post-series of RBI measures, including a 25 bps rate cut, is why FIIs turn towards Indian stocks,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

7] Addition of six lakh fresh retail investors: Anshul Jain of Lakshmishree Investment and Securities said that over six lakh new retail investors joined the Indian stock market last week, which is also a key factor in the 'Marvelous Monday' on Dalal Street.

Stock market outlook

Speaking on the outlook of the Indian stock market after this rally, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “Not much has changed except the technical aspects of the markets. The following important event would be Donald Trump's announcements on tariffs on the 2nd of April. The impact of these announcements will be felt by us when trading resumes on the 3rd of April in Indian markets. Studying the implications before taking meaningful exposure to markets would make sense. ”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.