New Delhi, March 24 – Indian stock markets have made a significant recovery in 2025, regaining ground lost earlier this year due to renewed interest from foreign investors and attractive valuations. As per agency report, both key indices—BSE Sensex and NSE Nifty—continued their upward momentum on Monday, extending gains for the sixth consecutive session.
Analysts attribute the rebound to a combination of factors including the return of foreign portfolio investors after prolonged selling, strong buying at lower levels, and the US Federal Reserve's indication of two potential interest rate cuts in 2025. This shift in global monetary outlook, coupled with improved domestic valuations, has boosted investor sentiment across the board.
From March 17 onwards, the BSE Sensex has surged by 4,155.47 points, marking a 5.62 percent rise, while the NSE Nifty has jumped 1,261.15 points, or 5.63 percent, during the same period. This strong rally has effectively reversed the downturn seen earlier in the year. In February alone, the Sensex had declined by 4,302.47 points, or 5.55 percent, and another 638.44 points, or 0.81 percent, in January. However, so far in March, the Sensex has recovered by 4,786.28 points, a gain of 6.53 percent.
According to Satish Chandra Aluri of Lemon Markets Desk, Indian markets have shown remarkable strength in March. He highlighted that buying at lower levels, supportive valuations, a weakening US dollar, and lower US bond yields have led to the return of foreign investors. After offloading nearly $29 billion over the last five months, foreign investors have turned net buyers in recent sessions.
Siddharth Khemka, Head of Research and Asset Management at Motilal Oswal Financial Services Limited, noted that market confidence was further boosted by signs of flexibility from US President Donald Trump regarding retaliatory tariffs. Combined with global and domestic tailwinds, this has helped restore momentum in the Indian equity markets, positioning them for continued growth in the coming weeks.
