Market's Upward Trajectory
On October 27, 2025, the Indian stock market witnessed a strong rebound at the start of trading. The Sensex, comprising 30 prominent stocks, saw an increase
of 272.7 points, reaching 84,484.58. Simultaneously, the Nifty, which includes 50 leading stocks, rose by 88.55 points to hit 25,883.70. This positive movement was largely attributed to the buoyant performance of global markets, which were fueled by expectations surrounding potential rate cuts by the U.S. Federal Reserve. The anticipation of a U.S.-China trade deal and an influx of foreign investments also bolstered the optimistic outlook of the markets. Notable gainers within the Sensex included Tata Steel, Bharti Airtel, Reliance Industries, State Bank of India, HDFC Bank, and NTPC. However, Infosys, Bharat Electronics, Kotak Mahindra Bank, and Bajaj Finance experienced declines during this period. The overall sentiment was overwhelmingly positive, contributing to the market's robust performance.
Global Market Signals
The positive trend in Indian markets was mirrored by significant gains in various Asian markets. Specifically, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index all registered substantial increases. Adding to the overall optimistic environment, U.S. markets had concluded their trading on Friday, October 24, 2025, on a positive note. According to V.K. Vijayakumar, the Chief Investment Strategist at Geojit Investments Limited, the global market environment was clearly bullish, with the Dow Jones, Nikkei, and Kospi all at record highs. He noted that the declining trade tensions globally were also contributing to the positive sentiment. This combination of strong performance across major global indices and diminishing trade concerns significantly contributed to the favorable investment climate.
Factors Behind Rally
Several key factors drove the Indian market's upward movement. A crucial element was the anticipation of potential rate cuts by the U.S. Federal Reserve. This hope was triggered by a softer-than-expected U.S. inflation report. Furthermore, the prospects of a U.S.-China trade agreement and possible reductions in U.S. tariffs on Indian imports, potentially to 15–16%, added to the market's optimism. On Friday, October 24, 2025, Foreign Institutional Investors (FIIs) injected ₹621.51 crore into equities, further demonstrating confidence in the market. Global oil benchmark Brent crude also saw a slight increase, climbing 0.23% to reach $66.09 a barrel. These combined factors created a conducive environment for the market's positive performance.
Previous Day's Performance
In contrast to the positive start on Monday, October 27, 2025, the Indian stock market had faced some headwinds the previous trading day. On Friday, October 24, 2025, the Sensex had decreased by 344.52 points, equivalent to a 0.41% drop, closing at 84,211.88. The Nifty also experienced a decline, losing 96.25 points, or 0.37%, and settling at 25,795.15. This slight correction, however, did not diminish the overall positive sentiment, as the market quickly rebounded the following trading session. The rebound was largely driven by the expectations of the U.S. Fed rate cuts and other positive global cues.
