- Nifty surges 1,450 points in four sessions, Sensex up nearly 1,700 points.
- Global cues, tariff relief, and strong FII inflows drive the rally.
- Hopes of India-US trade deal and easing inflation lift investor sentiment.
The Indian stock markets witnessed a powerful four-day surge, with the Nifty 50 index posting its best weekly gain in over three years. A key catalyst was former US President Donald Trump’s announcement of a 90-day pause on new tariffs. This improved global investor sentiment.
In addition to global developments, there are expectations of major economic reforms under Modi’s third term. Renewed foreign institutional investor (FII) interest also played a crucial role.
From Tariffs to Trade Talks: What Sparked India’s 4-Day Market Rally
Markets responded swiftly to the easing of trade tensions. Especially after Trump’s tariff pause, which reduced uncertainty in global supply chains. For India, which relies heavily on exports and imports of electronics and tech, the announcement was particularly beneficial.
Talk of an India-US trade deal further boosted investor confidence. As both countries seek to recalibrate their global economic partnerships, the possibility of a more favorable trade environment for Indian businesses appears increasingly realistic.
Foreign Institutional Investors (FIIs), who had been net sellers in recent weeks, turned buyers amid improving global cues and the prospect of pro-market reforms in India. This reversal added momentum to an already bullish sentiment. It was especially notable in banking and IT stocks.
Moreover, local factors like cooling inflation and positive monsoon forecasts point to stability in the rural economy and purchasing power. This combination of global relief and domestic resilience is what makes this rally stand out.
India’s market momentum highlights how quickly investor confidence can shift. Especially when macro and global factors align positively. When reforms, trade, and liquidity work together, the impact is significant.
“Markets are moved not by reason, but by emotion.” — André Kostolany
