Indian Stocks Erase 2025 Loss on Liquidity Easing, Fiscal Spend

By Pune Media On Mar 24, 2025

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India’s benchmark stock index erased this year’s decline as signs of a pickup in government spending and monetary easing buoyed investor sentiment.

The NSE Nifty 50 Index climbed as much as 1.3%, and headed for a sixth day of gains, which would be the longest winning streak since September. The rupee strengthened.

Optimism has been growing after global banks, including Citigroup Inc., have said the market’s selloff since September has eased concern around expensive valuations. The Reserve Bank of India’s efforts to inject liquidity into the financial system have also boosted investor sentiment.

“Confidence is coming back,” said Sonam Srivastava, founder of Wright Research in Mumbai. “There is expectation of earnings bottoming out. We are seeing a convincing recovery in various stocks and this rally definitely seems to have legs.”

A number of indicators of economic growth including tax collections and power demand have shown improvement in recent weeks, boosting confidence following a selloff in stocks that started in September. The Indian rupee strengthened against the dollar on Monday, touching the lowest level since early January.

The Nifty had dropped as much as 6.6% for the year when it set its lowest close so far in 2025 on March 4.

–With assistance from Bhaskar Dutta and Chiranjivi Chakraborty.