India's main stock market index has recovered from earlier losses this year due to increased government spending and monetary easing, boosting investor sentiment. The NSE Nifty 50 Index rose by 1.3% on Monday and is on track for a six-day winning streak, the longest since September of the previous year.

Recent indications from global banks, such as Citigroup Inc., have alleviated concerns about the market being overvalued, following a selloff since September. The infusion of liquidity and rate cut by the central bank at its last meeting have also contributed to a positive outlook.

Investor confidence is growing, with various stocks showing signs of recovery, indicating a sustainable rally. Analysts are optimistic about the market, with expectations of improving earnings. The Nifty has rebounded by about 7% from its March lows after a 16% decline from its peak in September. The economic slowdown and continuous foreign selling had previously impacted the market.