The morning bustle on Mumbai’s Dalal Street was different today—like a sigh of relief after a long wait. The markets, which had been rising for four days straight, opened in the green again. Brokers’ faces were filled with smiles as the numbers flashed on TV screens, as the government’s wheels, stalled for 43 days in faraway America, finally began to turn.
As news of the US shutdown ending broke, a wave of euphoria swept through the Indian market. Investors’ hopes were restored – but the big question is: will this rally last, or is it just a temporary relief?
Chapter 1: The End of the Shutdown and the Flight of Sentiment
The nearly month-and-a-half-long government shutdown in the US finally ended on Wednesday night. President Donald Trump signed a funding bill, allowing government departments to resume operations. This news had a direct impact in India. The Sensex rose 169 points this morning to cross 84,635, while the Nifty touched 25,925. This was the fourth consecutive day that the markets traded in the green. Investors believe that the end of the US shutdown has reduced global uncertainty and will restore stability to business activity.
Chapter 2: Global Signals and Trump’s Trigger
The US shutdown, along with the Trump administration’s dovish policy toward India, also boosted the market. President Trump recently signaled positive sentiment regarding the India-US trade deal, boosting foreign investor confidence.
Meanwhile, expectations of a potential interest rate cut by the US Federal Reserve in December also supported global equity markets. Investors now hope that stabilization in the US economy will ease pressure on the dollar index and accelerate investment flows into emerging markets, particularly India.
Chapter 3: News of Relief on the Domestic Front
Economic indicators in India are also in the market’s favor. Inflation fell to 0.25% in October, the lowest level in 18 months. Food prices have fallen, and consumers have benefited from tax relief. Declining inflation has raised hopes that the RBI may reduce the repo rate in its next monetary policy meeting. A reduction in interest rates would mean cheaper loan rates, more investment, and renewed energy in the market.
Chapter 4: Market Experts’ Opinion – Will the Rally Continue?
Ashika Institutional Equities said progress in the US Senate and expectations of interest rate cuts have increased the risk-taking approach. The Nifty continues to hold higher levels, while a sense of relief prevails in global markets.
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