Key Points

Over the past five sessions, the Sensex has advanced around 2.3 per cent and the Nifty about 2 per cent, lifted by optimism around proposed Goods and Services Tax (GST) reforms. Experts note that strong domestic inflows and stable global cues have further strengthened investor confidence.

According to Ashika Institutional Equities - Ashika Stock Broking, markets opened on a cautious note but steadily gained ground.

"Sentiment was buoyed after China, India's largest trading partner, kept its key interest rate unchanged, a move that signals policy stability and carries potential implications for India's trade outlook. On the technical front, Nifty decisively broke past its crucial resistance at 25,000 and continued to hold firm above this mark, further boosting investor confidence," it said.

Vinod Nair, Head of Research at Geojit Investments Limited, highlighted that the rally was supported by domestic factors but cautioned about external risks.

"The Indian market sustained its positive momentum, supported by strong domestic inflows and favourable macro tailwinds. However, rich valuations and external risks, particularly the U.S. tariffs and sanctions on the purchase of Russian crude, continue to pose challenges. Hence, greater visibility on U.S. trade policy and the path of earnings recovery will be critical," he said.

Nair also pointed out that global markets are awaiting cues from the release of the US Federal Reserve's FOMC minutes and Fed Chair Jerome Powell's upcoming address at Jackson Hole.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted the significance of Nifty relcaiming 25K mark. "The benchmark indices Nifty has continued its northward journey for the fifth consecutive trading session. Most noteworthy, it has ended the session above the psychosocial level of 25,000 mark. Bank Nifty, on the other hand, relatively underperformed, trading sideways in a narrow range," he explained.

Shah added that sectoral performance remained mixed, with IT and FMCG stocks leading the gains, while media and pharma shares slipped. Infosys and TCS emerged as top performers in the Nifty pack, while BEL and Shriram Finance were among the major laggards.

Broader markets also mirrored the upbeat sentiment. Both Nifty Midcap and Nifty Small Cap 100 indices ended in the green, outperforming frontline benchmarks for the second consecutive session. Market breadth remained strong, with more than half of the Nifty 500 constituents closing higher.

- ANI