The Indian stock market has seen significant gains over the past two days, with both the Nifty 50 and BSE Sensex climbing approximately 2% each.
However, these recent increases are largely driven by specific factors, including optimism surrounding potential trade relaxations between the U.S., Canada, and Mexico, as well as a decline in oil prices.
Despite the rally, uncertainties persist, such as unresolved reciprocal tariff clarifications and continued foreign investor sell-offs, which have contributed to a year-to-date outflow of $15.6 billion. Additionally, the market is closely watching upcoming U.S. labor market data and a speech by the Federal Reserve Chair, both of which could impact future trends.
Given these mixed signals, it remains too early to declare the start of a sustained bull market in India. Investors should closely monitor economic indicators and global developments before making long-term investment decisions.
