Indian stock markets experienced a robust rebound on Wednesday, with the SENSEX and NIFTY indices climbing over 1% in early trade. This surge followed a turbulent start to the week, driven by a global sell-off that had significantly impacted markets worldwide.
The SENSEX soared by 1,046.13 points to 79,639.20, while the NIFTY50 ascended to 24,306.45, reflecting a rise of 1.3%. The uptick was supported across all sectoral indices, showcasing a broad-based recovery and positive investor sentiment.
Driving the rally were dovish signals from the Bank of Japan, which led to a more than 2% drop in the yen against the dollar, bolstering global stock markets. Furthermore, the announcement of Nobel laureate Muhammad Yunus as the interim leader in Bangladesh bolstered the optimism.
Domestically, the Indian government’s decision to offer a dual tax option on long-term capital gains for property bought before July 23, 2024, infused optimism. Investors were given the choice between two tax rates, which helped stabilise the market sentiment.
Overall, despite global economic challenges, India’s markets are seen as resilient. The strategic economic decisions and political stability in neighbouring Bangladesh are positioning India as a secure investment destination amidst ongoing global uncertainties.
