Indian equity markets rebounded after two days of losses, with the Nifty index testing 25,300 in morning trade on Wednesday. Market sentiment was supported by upbeat global cues and growing optimism over a possible US Fed rate cut later this month. Real estate, metals and PSU banks are leading the gains. 

At 11:30 am, the Nifty index rose 161 points at 25,306, while the Sensex surged 474 points to 82,504 

SEBI-registered analyst Rohit Mehta shared five reasons why the bulls are charging ahead on Dalal Street. 

 Strong global cheer boosts sentiment

 Asian markets were firmly in the green: Japan's Nikkei, Hong Kong's Hang Seng, Shanghai's Composite, and South Korea's Kospi all traded higher. 

Wall Street futures also hinted at a strong US open later today, reinforcing the risk-on sentiment across global equities. 

 Fed rate cut bets are rising 

 Investor confidence strengthened after US Fed Chair Jerome Powell hinted that the slowdown in US job growth could prompt further rate cuts this year. 

Lower US interest rates translate into reduced dollar strength and treasury yields, and increased capital inflows into emerging markets like India. 

 Indian Rupee recovers sharply

 The Indian rupee rebounded 88 paise from its all-time low, now at ₹87.93 per US Dollar. A weaker dollar index, soft crude prices, and likely RBI intervention led this rebound. Mehta noted that a stronger rupee tends to improve sentiment among foreign investors and reduce import cost pressures. 

 Global crude oil prices cool off

 Brent crude eased slightly to $62.27/barrel, extending recent losses. 

The IEA flagged a potential supply surplus by 2026 due to rising production and muted demand, which would be a welcome sign for India, which imports most of its oil. 

 Market volatility is reducing

Meanwhile, the India Volatility Index (VIX), a key gauge of market fear, dropped nearly 4% to 10.76, signaling lower market uncertainty and improved risk appetite among traders. 

A calmer VIX typically supports stable short-term market momentum.

Nifty: What are technical charts indicating?

According to Mehta, Nifty remains above its short-term supports with bullish momentum building. A sustained move above 25,330 could pave the way for further upside, while support is seen around the 25,000–25,050 levels. 

He concluded that with hopes of a rate cut, a stronger rupee, and easing volatility, the market sentiment remains positive. However, traders will keep an eye on US data releases and Fed signals in the coming days. 

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