Umair
Last Updated:
Sensex, Nifty Rise: After a strong performance last week, the Indian stock market continued its rally into this week; Key points investors should know
Sensex, Nifty Surge – Key Factors Behind Today’s Market Boom
Why Is Stock Market Rising Today? After a strong performance last week, the Indian stock market continued its rally into this week. Following a robust Monday, frontline indices opened higher on Tuesday. The Nifty 50 started at 23,751 and reached an intraday high of 23,869, extending its winning streak to seven consecutive sessions. Over this period, the index has surged 1,472 points, or approximately 6.55%.
At its intraday high, the BSE Sensex surged over 750 points, crossing 78,700, while the Nifty50 climbed above 23,850 around 10:00 AM.
After closing at 23,658 on Monday, the Nifty 50 turned positive for the year, surpassing its December 31, 2024, closing level of 23,644. Similarly, the BSE Sensex opened higher at 78,296 and hit an intraday high of 78,741.
Nifty 50, Bank Nifty turns green in YTD
The index has now gained over 4,900 points, or 6.65%, in the past seven sessions, also turning positive for the year by crossing its previous closing level of 78,139.
Banking stocks saw strong buying from the opening bell. The Bank Nifty index opened with an upside gap at 51,874 and climbed to an intraday high of 52,063. It has now gained over 4,000 points, or 8.30%, over the past seven sessions. The index is already trading higher year-to-date, exceeding its December 31, 2024, close of 50,860.
However, broader markets faced some selling pressure in early trade. The BSE Small-cap index was down by around 1%, while the Mid-cap index declined nearly 0.50%.
Several factors are driving the ongoing market rally. Experts attribute the gains to expectations of an RBI rate cut following the US Fed meeting, strong buying by domestic and foreign institutional investors, and Morgan Stanley’s positive outlook on the Indian economy and inflation. Additionally, US President Donald Trump’s recent comments suggesting that not all threatened auto tariffs will be imposed on April 2 provided further relief.
A rebound in India’s GDP is also expected to support better Q4 results in 2025. Experts highlight that over six lakh new retail investors joined the market last week, contributing to the sharp rally in Indian equities.
Key Drivers of the Market Rally
Easing Tariff Concerns: Investor sentiment improved after US President Donald Trump signaled a more flexible approach to tariffs, raising hopes that India might receive some concessions. However, analysts advised caution, noting that clarity would emerge only after April 2. “While momentum favors the bulls, there is no strong fundamental support for a sustained rally, especially with the risk of reciprocal tariffs,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
FII Inflows: Foreign Institutional Investors (FIIs) turned net buyers, purchasing equities worth Rs 3,055.76 crore on Monday. “The recent market strength is driven by renewed FII buying in the cash segment and short-covering in derivatives,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
Global Cues: Positive global market trends further boosted domestic equities. The S&P 500 closed at a two-week high, gaining 1.76%, while the Nasdaq rose 2.27%, driven by Nvidia and Tesla. The Dow Jones Industrial Average advanced 1.42%. Asian markets showed mixed trends, with Japan’s Nikkei 225 trading higher, while Shanghai and Hong Kong posted losses.
IT Sector Rally: IT stocks continued their upward momentum for the fourth consecutive session, with the Nifty IT index rising over 2.3%. All ten index constituents were in the green, led by HCL Tech, L&T Technology Services, Coforge, and Mphasis. Analysts attributed the rally to improving global demand and Trump’s softened stance on tariffs.
Stronger Rupee: The Indian rupee opened at 85.58 against the US dollar, reaching a three-month high before settling at 85.64. The currency has been on an eight-day winning streak, supported by strong dollar inflows from intercompany borrowings and profit repatriation ahead of the fiscal year-end, according to Reuters.
Technical Outlook
Anand James, Chief Market Strategist at Geojit Financial Services, noted that “Nifty’s next target of 23,807 is within reach. Some consolidation is expected, but momentum could push it toward 24,150-24,200 unless a dip extends beyond 23,480. The 23,600 level will be the key downside marker for the day.”
Will The Market Rally Continue?
Speaking on the outlook of the Indian stock market after this rally, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “Not much has changed except the technical aspects of the markets. The following important event would be Donald Trump’s announcements on tariffs on the 2nd of April. The impact of these announcements will be felt by us when trading resumes on the 3rd of April in Indian markets. Studying the implications before taking meaningful exposure to markets would make sense. “
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
