Indian Markets Rally as Banking Stocks Hit Record Highs

In a remarkable surge on Monday, the Indian stock market witnessed a significant uptick, with the Sensex crossing the 79,000 mark and the Nifty surpassing 24,000. This rally, led by banking stocks, marks a pivotal moment after more than four months of anticipation.

Global Trade War Fears Take a Backseat

Investors are betting on India's relatively insulated economy, thanks to its large domestic market and minimal reliance on exports, especially to the US. This optimism is further fueled by the RBI's liquidity measures, declining inflation rates, and the prospect of an above-normal monsoon.

Evening Shadows Cast by US Market Downturn

However, the day's gains were somewhat overshadowed as US markets opened significantly lower, driven by tensions between US President Donald Trump and Federal Reserve chairman Jerome Powell. The Dow Jones, S&P, and Nasdaq Composite all recorded losses exceeding 2%.

Rupee Strengthens as Foreign Investments Pour In

The rupee reached its strongest level since mid-December, closing at 85.13 against the dollar. This resurgence is attributed to a sudden reversal in foreign fund flows and the dollar's weakness against major currencies. Notably, HDFC Bank, Reliance Industries, Infosys, and Axis Bank were among the top contributors to the Sensex's performance.