Mumbai, India — India’s benchmark equity index, the BSE Sensex, crossed the historic 76,000 mark on May 6, 2025, fueled by a global stock market surge, easing U.S. interest rate signals, and strong domestic corporate earnings. It marks the first time the index has touched this level, closing at 76,112 points with a 1.3% intraday gain.

What’s Driving the Rally?

Key drivers of this market upswing include aggressive buying by Foreign Institutional Investors (FIIs), which infused over ₹9,300 crore into Indian equities in the past 10 sessions. Domestic mutual funds also witnessed record SIP inflows.

“We’re seeing robust participation from both global investors and retail SIPs. The macroeconomic environment is favoring Indian markets,” said Radhika Desai, Head of Equities at Axis Securities.

Contributing sectors included IT, private banking, FMCG, and auto. Tech giants Infosys and TCS rose by over 4%, while ICICI Bank and HDFC Bank saw record intra-day volumes.

Global Tailwinds and U.S. Rate Outlook

The rally is also supported by positive global cues. Wall Street rallied overnight as the U.S. Federal Reserve hinted it may hold off further rate hikes, leading to risk-on sentiment across Asian markets.

“The Fed’s dovish stance has improved investor risk appetite. India’s stable policy and growth forecast stand out in this global setup,” said Mitesh Shah, Economist at HDFC Mutual Fund.

Asian indices like Nikkei and Hang Seng also posted gains, although India led the region in terms of daily percentage increase.

Domestic Fundamentals Remain Strong

India's strong GDP numbers, a steady rupee, moderating inflation, and robust tax collections have given confidence to investors. Corporate earnings for Q4 FY2024–25 have largely exceeded analyst expectations, especially in the banking and pharma sectors.

In addition, the government's continued push for capex spending and manufacturing incentives under PLI schemes have helped long-term sentiment.

What Analysts Are Saying

“There’s structural strength in the Indian market. But after such a sharp rally, some near-term profit booking is expected,” said Nirmal Jain, Founder, IIFL Group.

“We advise clients to remain overweight on large-cap private banks and export-driven tech,” said Swati Malhotra, Market Strategist at Edelweiss.

The Nifty 50 also rose sharply to touch 23,100 levels, indicating broad-based momentum across segments.

What to Watch Next

Market experts recommend keeping an eye on the Reserve Bank of India’s upcoming monetary policy decision and any geopolitical developments that could impact investor sentiment. The next major trigger will be the June GST collection and the central government’s pre-budget commentary.

For now, the Sensex milestone is being celebrated as a sign of India’s economic resilience in a volatile global landscape.