Our Bureau
Mumbai
India’s stock market has regained the $5 trillion equity valuation milestone, marking a significant recovery in investor sentiment after months of volatility driven by geopolitical tensions, foreign fund outflows and concerns over rising oil prices. Benchmark indices continued their winning streak for a fourth consecutive session on Wednesday, with the Sensex closing at 77,155.62 and the Nifty 50 ending at 24,085.70, both near six-week highs.
The rally has been fueled by improving global risk appetite following signs of a preliminary peace agreement between the United States and Iran, which helped cool crude oil prices. Lower oil prices are particularly beneficial for India, one of the world’s largest oil importers, as they ease inflationary pressures and improve the country’s macroeconomic outlook.
Market capitalization of listed Indian companies surged sharply over the past week, adding trillions of rupees in investor wealth, as investors returned to equities after a prolonged period of caution.
Analysts said the recovery reflects confidence in India’s economic fundamentals, including steady interest rates, controlled inflation and resilient domestic demand. The return of foreign investors after weeks of sustained selling has also supported market momentum. Foreign portfolio investors had withdrawn nearly $27 billion from Indian equities this year, but recent inflows suggest sentiment may be turning.
Despite the milestone, experts caution that risks remain. Any renewed escalation in global conflicts or a sharp rise in crude oil prices could pressure markets again. However, with economic growth expected to remain robust and investor confidence improving, market participants believe Indian equities are well positioned to maintain their recovery in the coming months.
