After opening day on a positive note, Indian benchmark indices continued their upward trajectory, gaining momentum throughout the session, and closing on firm footing.

Benchmark Indian equity indices continued their northward movement and settled higher by over 1% on Thursday's session.

At the closing bell, the BSE Sensex  closed Higher by 899 points (up 1.2%)

Meanwhile, the NSE Nifty closed points 283 Higher (up 1.2%)

Maruti Suzuki, Bharti Airtel, M&M among the top gainers today

IndusInd Bank, Bajaj Finance, and Trent on the other hand, were among the top losers today.

The GIFT Nifty was trading at  22,194 higher by 204 points at the time of writing.

The BSE MidCap index ended 0.6% higher and the BSE SmallCap index ended 0.7% higher.

Sectoral indices were trading positive with stocks in media and telecommunication witnessing most buying.

The rupee is trading at Rs 86.3 against the US$.

Gold prices for the latest contract on MCX are trading 0.1% higher at Rs 88,682 per 10 grams.

Meanwhile, silver prices were trading 0.3% lower at Rs 99,601 per 1 kg.

Here are the four key factors driving the market's momentum:

#1 Valuation comfort

After a sharp correction from peak levels, valuations now appear comfortable. The domestic macroeconomic scenario has been positive, and the price corrections have led to a subsiding of valuation froth. Most indices, including small and mid-caps, are now trading below their long-term average price-to-earnings ratios.

#2 Strengthening macro indicators

India's economy is showing signs of revival, with GDP growth at 6.2% in Q3FY25. Retail inflation has decreased to 3.61% in February, while industrial production grew 5% in January. The economy's growth prospects appear strong, with banks having low NPAs and robust balance sheets. This has boosted market sentiment, with the stock market optimistic about India's economic durability.

#3 Rate Cut Hopes Rise for US Fed, RBI

The US Fed's decision to maintain the current state in its March policy meeting hasn't deterred hopes of future rate cuts, with signals suggesting two possible rate cuts this year. This development, combined with easing inflation, has led to expectations of a rate cut by the Reserve Bank of India (RBI) in April. The RBI's efforts to ease system liquidity may also lead to a surplus, making an April rate cut highly likely, with another possible cut ahead.

#4 Hopes of earnings revival

The market is poised for an earnings revival from Q1FY26, potentially triggering a fresh rally in the domestic market. India's earnings growth is expected to accelerate, with a 12-14% growth forecast for the next 12 months. The Nifty's earnings per share growth is predicted to rise 13.6%, driven by a recovery in discretionary consumption
 

Greenfield Steel Project Boosts BMW Industries

In the news from metal sector, shares of BMW Industries surged nearly 9% on Thursday, driven by the company's announcement of a significant capital expenditure (capex) plan.

The board of directors has approved an investment of Rs 0.8 billion (bn) to establish a state-of-the-art greenfield downstream steel complex in Jharkhand. This strategic move is expected to enhance the company's steel production capabilities, diversify its product offerings, and strengthen its presence in the Indian steel market.

BMW Industries' stock price skyrocketed by as much as 8.77% to reach an intraday high of Rs 48 per share, marking its largest single-day gain since 5 February 2025.

BMW Industries' shares continued their winning streak for the fourth consecutive day, defying the company's 13% decline. Notably, the stock has surged by approximately 18% over the last four sessions.

BMW Industries will develop a downstream steel complex with a total annual production capacity of 10.4 lakh tonnes. The project, estimated to cost Rs 0.9 bn, will be funded through internal accruals and debt.

The complex is expected to become operational in stages over the next two years, with the first plant starting commercial operations in FY26.

IndiGo Shares Touch New High Mark

Moving on to the news from services sector, shares of InterGlobe Aviation, the parent company of India's largest airline IndiGo, continued their upward trajectory for the second consecutive day.

The stock surged as much as 4% to reach a fresh record high of Rs 5,187 per share, driven by optimism about the airline's prospects.

IndiGo's shares have been on a tear, skyrocketing over 13% in the past month. This impressive rally has far outpaced the broader market, with the Nifty 50 index managing a modest gain of just 0.6% during the same period.

IndiGo has set an ambitious target to boost its international capacity share to 40% by FY30. To achieve this, the airline is expanding its reach beyond its robust domestic network. It plans to tap into underserved international routes by leveraging long-range aircraft and strategic codeshare partnerships.

IndiGo has further solidified its dominance in the Indian aviation sector, increasing its market share to a record 65.2%. This represents an 80-basis points growth, underscoring its strong grip on the domestic market. IndiGo's robust network and customer-centric approach have contributed to its success. The airline's impressive performance has cemented its position as a leader in the Indian aviation industry.

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