New Delhi, Sept. 12 -- The Indian stock market benchmark, the Nifty 50, ended above the psychologically important 25,100 mark on Friday, September 12. The last time the index closed above this level was on July 23, when it ended at 25,220. Moreover, the index extended its gains to an eighth consecutive session, its longest daily winning streak since September last year.

What is driving the index higher? The recent GST reforms, upward revision of India's growth outlook, hopes of an India-US trade deal and expectations that earnings will see a significant revival from the second half of the year are the key factors underpinning market sentiment.

The market seems to have started believing that the worst is behind it. Earnings, after coming...