Dalal Street begins the week on a high with global cues and domestic reforms boosting investor sentiment

The Indian stock market begins the new week on a strong note as both Sensex and Nifty move upward in the morning session. Sensex jumps more than 200 points while Nifty crosses the 27,900 level. This shows that investor confidence is firm and market sentiment is turning positive after a weak performance last week. At around 9:18 a.m. IST, the Nifty50 climbs by about 0.28 percent to trade near 24,939.15, while the BSE Sensex rises by 0.29 percent to reach 81,542.95. A little later, by 9:49 a.m. IST, both indices extend their gains, with Nifty standing at 24,955.05 and Sensex at 81,571.03.

Futures data also signals optimism. Gift Nifty futures trade around 24,953, showing a positive premium compared to the previous close. This means traders expect the market to maintain momentum throughout the day.

Boost from Global Cues

One of the main reasons behind the market rally is the global interest rate outlook. At the Jackson Hole Symposium in the United States, Federal Reserve Chair Jerome Powell hints at the possibility of a rate cut in September. Lower interest rates in the U.S. usually attract more foreign investment into emerging markets like India, as they become more profitable compared to U.S. assets. This global development creates positive momentum for Indian equities.

Technology Stocks in the Lead

Information technology companies take the lead in today’s rally. The IT sector rises by nearly 2.5 percent in early trade, making it the strongest performer of the day. Since IT companies earn a large part of their revenue from overseas clients, any improvement in global market conditions and currency stability benefits them directly. Strong buying interest in these companies adds significant weight to both Sensex and Nifty, driving them higher.

Mid-cap and small-cap stocks also join the rally. The mid-cap index gains around 0.4 percent, while the small-cap index adds nearly 0.3 percent. This shows that the rally is not limited to large companies alone but is spreading across the broader market.

LIC and IDBI Bank Development

Another key domestic factor shaping market sentiment today is the development regarding LIC and IDBI Bank. The Securities and Exchange Board of India (SEBI) has cleared the reclassification of Life Insurance Corporation of India (LIC) as a public shareholder in IDBI Bank. Under this decision, LIC must bring down its stake in IDBI Bank to 15 percent or lower within two years. It must also give up control of the bank’s board and reduce its voting rights to 10 percent.

This step is important because it clears the way for the government to move forward with the privatisation of IDBI Bank. Together, the government and LIC currently own more than 60 percent of the bank. The plan is to invite bids for this combined stake between October and December 2025. Investors welcome this move, and it has already helped IDBI Bank shares rise nearly 25 percent in 2025 alone.

Yes Bank Gains on Acquisition News

The banking sector sees more action with Yes Bank’s stock moving up after the Reserve Bank of India approves the acquisition of up to 24.99 percent stake in the bank by Sumitomo Mitsui Banking Corporation (SMBC). This strategic deal is viewed as a positive sign for the financial stability and growth prospects of Yes Bank. Investors respond with strong buying interest, pushing the stock higher in early trade.

Reliance and Institutional Support

Reliance Industries and other heavyweight stocks also support today’s market rally. Along with these corporate leaders, strong inflows from foreign institutional investors (FIIs) and domestic institutional investors (DIIs) provide further backing to the market. Stable crude oil prices and a firm Indian rupee against the U.S. dollar also add to the positive environment. All these factors combine to create a strong base for the current rally.

Technical Picture of the Market

From a technical point of view, charts show that Nifty has recently formed an inverted hammer pattern, which usually signals selling pressure at higher levels. However, analysts point out that if Nifty manages to move past the 25,000 mark, it could trigger further upward momentum. Similarly, the Sensex has an important resistance level near 81,900. A sustained break above this level may lead to fresh highs in the coming sessions.

Today’s broad-based participation from large, mid, and small-cap stocks indicates that the rally is not narrow or limited to a single sector. This is an encouraging sign because when multiple sectors contribute to the rise, the market trend tends to be stronger and more sustainable.

Sector-Wise Highlights

The information technology sector clearly takes the spotlight today with the strongest gains of around 2.5 percent. Banking stocks also remain active, with Yes Bank seeing a notable rise due to the SMBC deal. Investor confidence in financial services improves further with the clarity on LIC’s role in IDBI Bank, which clears the path for its privatisation. Energy companies benefit from the stable movement of crude oil prices, while institutional buying keeps the momentum alive across key sectors.

Broader Market Sentiment

Overall, market sentiment remains positive as both global and domestic factors align to support equities. The U.S. Federal Reserve’s dovish signals increase the flow of funds into India, while regulatory and corporate developments within the country boost sector-specific momentum. The balanced rise across multiple sectors reduces the risk of a sudden correction, as gains are not concentrated in just one area of the market.

Looking Ahead

Going forward, market watchers expect Nifty to test the 25,000 level soon, while Sensex is seen approaching the 81,900 resistance. If these levels are crossed and sustained, a new round of upward movement could take place. Much will depend on how global interest rate decisions unfold in September and how domestic policy developments shape investor confidence.

For now, the Indian stock market is in a strong position, driven by technology companies, banking sector reforms, foreign inflows, and steady global cues. If these supportive conditions continue, Dalal Street may witness more record highs in the weeks ahead.