India’s benchmark Nifty 50 index is inching toward the 26,000 mark, buoyed by softer U.S. inflation data, expectations of Fed rate cuts, and strong Q2 earnings. Analysts suggest a fresh high is possible if global liquidity remains supportive and domestic macro indicators stay resilient.
The Indian stock market is showing renewed strength as the Nifty 50 index approaches the psychological 26,000 level. On Monday, the index gained over 150 points to trade above 25,950, while the Sensex surged past 84,700. This rally follows a brief pause last Friday and is driven by favorable global and domestic signals.
Lower-than-expected U.S. inflation data has revived hopes of two rate cuts by the Federal Reserve in 2025, improving global liquidity sentiment. Domestically, strong Q2 earnings, festive demand, and robust FII inflows are supporting the bullish momentum. Technical indicators show Nifty breaking past key resistance levels, with RSI nearing overbought territory.
Key Highlights:
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Nifty 50 trades above 25,950, nearing 26,000 for the first time
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Sensex jumps over 600 points to cross 84,700
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Softer U.S. inflation boosts hopes of Fed rate cuts in October and December
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Strong Q2 earnings and festive demand fuel domestic optimism
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Technical breakout above 25,600 signals bullish continuation
Experts caution that while momentum is strong, profit booking and global volatility could trigger short-term consolidation. However, a sustained move above 26,000 could set the stage for new lifetime highs.
Sources: LiveMint, News18