Market Momentum Continues as Sensex Climbs for Third Straight Session

The Sensex witnessed a significant uplift, gaining 0.4% or 309 points to reach 77,044, while the Nifty also saw a rise of 0.5% to 23,437. This marks a 5.3% increase, or nearly 4,000 points, from its low on April 7 at 73,138.

Driving Factors Behind the Rally

Several factors have contributed to this recovery, including exemptions from tariffs by US President Donald Trump, the anticipation of an above-average monsoon, and the potential for more interest rate cuts in India. Jaykrishna Gandhi of Emkay Global Financial Services highlighted, "The stars are now aligning for a strong rally for India. Earnings estimates are bottoming out and we expect the downgrade cycle to arrest. Valuations have also corrected."

Sector Performance and Future Outlook

Eleven of the 13 major sectors experienced gains, with the broader midcaps and smallcaps advancing 0.7% and 1.1%, respectively. Heavyweight bank stocks jumped 1.4% on the back of prospects for further rate cuts following a drop in retail inflation to a five-year low.