Mon Mar 24 04:20:00 UTC 2025: ## Indian Stock Market Surges on Foreign Investment and Rate Cut Hopes

**Mumbai, India** – India’s benchmark equity indices, the Sensex and Nifty, rallied significantly on Monday, extending gains from the previous week. The Sensex surged 1.34 percent (1,027.35 points) to close at 77,932.86, while the Nifty climbed 1.3 percent (304.55 points) to reach 23,655. This marks six consecutive days of gains for both indices. The surge was driven by sustained foreign investor inflows and anticipation of a potential interest rate cut by the Reserve Bank of India (RBI) in its upcoming monetary policy announcement.

Despite concerns over potential US tariffs coming into effect on April 2nd, the market remained bullish. V K Vijayakumar, Chief Investment Strategist at Geojit Investment Services, attributed the rally to improving Indian macroeconomic indicators, attractive valuations, and a shift in foreign portfolio investor sentiment from selling to buying. Outflows from foreign funds last week moderated to ₹1,794 crore.

While the overall market sentiment is positive, Vijayakumar cautioned investors to exercise caution ahead of the April 2nd tariff deadline, advising them to wait for clarity on the situation before making further investment decisions. The financial sector performed particularly well, with the Nifty Bank index gaining 2.11 percent. Midcap and smallcap indices also saw significant gains.

The upcoming last week of March is expected to be volatile, with key economic data releases – including the Fed’s Balance Sheet and PCE Price Index – potentially impacting market sentiment and sectors such as banking, housing, and consumer goods.

*(Note: The unrelated information about the arrest of Shiv Sena members has been omitted as it is not relevant to the stock market report.)*

Read More