Share Market: Indian Market Surges After Becoming the World’s Fourth Largest Economy; Sensex-Nifty Gains
The domestic stock market ended last week on a positive note, closing in the green on Friday. The BSE Sensex rose by 770 points, while the Nifty added 244 points. Let’s take a look at today’s market update…
Following India’s elevation as the world’s fourth largest economy, the stock market opened Monday with a positive trend. Early trading showed gains in the Sensex and the Nifty crossing the 25,000-point mark. The Sensex surged 562.31 points to 82,283.39, and the Nifty traded 175.7 points higher at 25,028.85. The Indian rupee also strengthened by 44 paise to 85.01 against the US dollar during early trade.
On Friday, gains of about 1% in Sensex and Nifty were driven by buying interest in Reliance Industries, HDFC Bank, and ITC. Additionally, the expected record dividend from the RBI and the decline in US Treasury yields boosted investor confidence. Weekly data showed the BSE benchmark fell 609.51 points (0.74%), and the Nifty dropped 166.65 points (0.66%). On the final trading day, the BSE 30-stock index rebounded from a flat start to close at 81,721.08 with a 769.09-point (0.95%) gain. The index rose as much as 953.18 points (1.17%) during the session to touch 81,905.17. A total of 2,361 stocks advanced, 1,589 declined, and 156 remained unchanged on the BSE. The NSE Nifty gained 243.45 points (0.99%) to close at 24,853.15.
Status of 30 Sensex Stocks
Top Gainers and Losers on NSE
Market Rally in Early Trading
Sensex and Nifty surged in early Monday trading, fueled by the announcement of India’s new ranking as the fourth largest economy globally. Positive factors also included the early monsoon arrival, RBI’s declaration of a record Rs 2.69 lakh crore dividend to the government for FY25, and US President Donald Trump’s decision to delay EU tariffs until July 9, all contributing to market optimism.
Winners and Losers
Among Sensex companies, Mahindra & Mahindra, Tata Motors, Titan, ICICI Bank, Tech Mahindra, NTPC, Power Grid, and Bajaj Finserv led the gains. Eternal was the only stock to decline among the 30 Sensex components. Exchange data revealed that foreign institutional investors (FIIs) purchased equities worth Rs 1,794.59 crore on Friday.
India Becomes the Fourth Largest Economy, Surpassing Japan
NITI Aayog CEO BVR Subramaniam announced that India has overtaken Japan to claim the position of the world’s fourth largest economy. VK Vijayakumar, Chief Investment Strategist at Geojit Investment Ltd, commented, “India’s new ranking is a significant morale booster for the markets. RBI’s dividend payout exceeding budget estimates will support the government’s fiscal deficit target of 4.4% for FY26. This will sustain the trend of declining inflation and interest rates, thereby supporting equity markets.”
Status of Asian and US Markets
In Asia, South Korea’s Kospi and Japan’s Nikkei 225 indexes traded higher, while Shanghai’s SSE Composite and Hong Kong’s Hang Seng closed in the red. US markets ended Friday’s session lower.