The stock market witnessed a massive rally, adding ₹12 lakh crore in investor wealth. This sharp rise was driven by multiple factors that boosted market sentiment and pushed indices to new highs. Let’s look at the five key reasons behind this remarkable surge.

1. Strong Global Cues

• Positive trends in international markets played a crucial role in boosting investor confidence.
• Optimism around economic recovery and stable interest rates fueled buying momentum.

2. Robust Corporate Earnings

• Several major companies reported better-than-expected quarterly results.
• Strong earnings growth reassured investors about business stability and future potential.

3. Increased Foreign Investment

• Foreign Institutional Investors (FIIs) showed renewed interest in Indian equities.
• Heavy inflows into key sectors like banking, IT, and infrastructure contributed to the rally.

4. Policy Support and Economic Growth

• Pro-business policies and government initiatives boosted investor sentiment.
• Strong GDP growth and industrial performance signaled a resilient economy.

5. Bullish Domestic Participation

• Domestic Institutional Investors (DIIs) and retail investors continued to show strong buying interest.
• Increased participation in mid-cap and small-cap stocks added to market strength.
• If positive trends continue, the rally could extend further.
• Investors should stay cautious of volatility and global economic developments.
• Tracking corporate earnings, FII activity, and policy decisions will be key to understanding market direction.