New Delhi, July 8 -- The Indian stock market has staged a sharp recovery in recent months following a period of heightened volatility. Both the Nifty 50 and Sensex have risen nearly 17% from April lows, and are now trading close to their September peaks, gaining around 8% year-to-date (YTD). The benchmark indices have closed each of the last four months in the green. This stellar rebound has lifted India's share in global market capitalisation to 4%, up from a 16-month low recorded in February 2025.

The rally has been led by domestic cyclicals, supported by multiple macro tailwinds, including ongoing trade talks with the US, RBI rate cuts, strong government capex, above-average monsoons, lower commodity prices, and ample banking system l...