The BSE Sensex reached an all-time high of 84,544.31, rising 1.6% on Friday as investors rallied on rate cut optimism and bullish momentum in global markets. This marks the second consecutive session of gains for Indian markets, with the benchmark Nifty 50 also surging 1.5% to close at 25,790.95. A combination of factors, including benign inflation rates and foreign capital inflows, fueled market confidence, leading to broad-based gains across sectors, including metals, auto, realty, and banking.

For the week, the markets are on track for a 0.9% rise, building on optimism sparked by the Federal Reserve's recent decision to cut interest rates. Investors are hopeful that the Reserve Bank of India (RBI) will follow suit, potentially easing monetary policy sooner than expected. The Nifty 50 has been a major beneficiary of this sentiment, with significant gains in key sectors like banking and financial services.

Among the top performers of the day were JSW Steel, which saw a 3.3% rise, Mahindra & Mahindra with a 2.8% increase, Coal India also up by 2.8%, and Maruti Suzuki, which gained 2.5%. The robust performance of these companies underscores the market’s strong rebound and growing investor interest in blue-chip stocks.

The market's bullish run was also supported by foreign institutional investors (FIIs), who were net buyers in the equity market. According to data from Trendlyne, FIIs purchased stocks worth Rs 5,426.8 crore over the past week. Mutual funds, on the other hand, were modest buyers, investing Rs 84 crore during the same period. Meanwhile, index options witnessed the highest outflow of Rs 27,037.9 crore from foreign investors.

In terms of market breadth, of the 2,248 stocks traded on Friday, 1,437 advanced while 792 declined, indicating strong market sentiment. Broader indices like the Nifty Midcap 100 and Nifty Smallcap 100 also closed in the green, reflecting positive investor sentiment in mid- and small-cap stocks. The BSE Realty Index was among the day’s top performers, gaining over 3.1%.

Meanwhile, Indian companies have been making strategic moves to raise capital and expand operations. For instance, Reliance Infrastructure announced plans to raise Rs 3,014 crore through a preferential share issue. The company is also

seeking shareholder approval to raise an additional Rs 3,000 crore through a qualified institutional placement (QIP) to fund its business expansion.

Other notable developments include Patel Engineering, which secured an order worth Rs 240 crore from NHPC for a key project in Sikkim. This highlights a growing pipeline of infrastructure projects in India, supported by both private and government investments.

The global market sentiment remained cautious, with Asian indices closing mixed, while European indices traded mostly in the red, with the exception of Russia’s MOEX and RTSI indices. US index futures were also in the red, signaling a cautious start to the next trading session on Wall Street. Meanwhile, Brent crude oil futures traded lower, adding to the uncertainty.

In corporate news, Suzlon Energy shares rose sharply after being excluded from the Stage 1 Additional Surveillance Measure (ASM) framework, providing relief to investors. Additionally, Torrent Pharmaceuticals received a Form 483 from the US FDA, with one observation, after a Good Manufacturing Practices (GMP) inspection at its Madhya Pradesh facility.

Indian markets continue to see strong investor confidence, particularly as foreign capital inflows remain robust. The positive outlook for monetary easing by the RBI, coupled with gains in key sectors, suggests that the Sensex and Nifty 50 may maintain their upward trajectory in the coming weeks. Investors are closely watching global trends and policy moves, especially in light of the recent Federal Reserve rate cuts and ongoing discussions around RBI policy adjustments.

As Indian companies pursue growth through strategic capital raising and infrastructure expansion, investors are likely to see more opportunities in sectors such as real estate, metals, auto, and banking. Additionally, the continuing rise in foreign institutional investments (FIIs) and mutual fund inflows indicates sustained bullish sentiment in the Indian equity markets.

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