The Indian stock market showcased a robust upward trend during Monday morning trading on April 28, with the Sensex and Nifty 50 indices each climbing nearly 1% in response to favorable global signals. The Sensex surged by over 850 points, reaching 80,073, while the Nifty 50 gained nearly 250 points to touch 24,283. By approximately 10:45 AM, the Sensex was up 749 points at 79,962, while the Nifty 50 rose 206 points to settle at 24,245. Additionally, both the BSE Midcap and Smallcap indices recorded impressive gains, contributing to an overall market capitalization increase of around ₹3 lakh crore in a single day.
Reasons Behind the Market Surge
Experts attribute the positive momentum in the Indian stock market to several key factors:
1. Diplomatic Approach Post-Pahalgam Attack
In the wake of the Pahalgam terror attack, India’s measured response has instilled a sense of stability in the markets. Analysts note that the country has opted for diplomatic channels rather than aggressive military actions, which is being viewed positively by investors. The international community, including the US State Department, condemned the attack and encouraged both India and Pakistan to pursue a peaceful resolution, easing market fears.
- VK Vijayakumar, Chief Investment Strategist at Geojit Investments, remarked, "The market’s resilience suggests it has not fully priced in a potential escalation into conflict between India and Pakistan."
2. Trade War Tensions Easing
Recent discussions between the US and China regarding a potential trade deal have alleviated some market anxieties. US President Donald Trump indicated ongoing negotiations, asserting that any tariff reductions would require significant concessions from China.
- According to Pankaj Pandey, head of research at ICICI Securities, "The peak of tariff-related concerns seems to be behind us, with an overall trend towards improvement."
3. Increased Investments from Foreign Portfolio Investors (FPIs)
Since April 15, foreign portfolio investors have been actively purchasing Indian equities, significantly boosting market sentiment. Amid concerns about a slowdown in the US economy, these investors have shifted their focus to India.
- Vijayakumar highlighted that "FPIs have purchased over ₹32,465 crores in just eight days, marking a substantial turnaround from previous selling patterns."
4. Strong Performance from Key Corporations
The stock prices of major companies, particularly Reliance Industries and major banks like ICICI Bank, HDFC Bank, and Axis Bank, have significantly contributed to the upward movement in market indices. Reliance’s shares increased by over 3%, following positive quarterly results that surpassed expectations.
- The company reported a 6% year-on-year rise in consolidated profits for Q4 FY25, which was well-received by investors.
Positive Outlook for Banking Sector
The banking sector has also garnered attention due to strong earnings reports that exceeded forecasts for the fourth quarter. The performance of key sectors, including IT and cement, has further reinforced investor confidence.
- "Overall, the fourth-quarter results have largely met expectations, and sectors like banking are showing promising growth," added Pandey.
This upward trajectory in the Indian stock market reflects a combination of strategic diplomatic moves, easing trade tensions, and robust corporate performances. Investors are optimistic as they navigate this dynamic landscape, keeping a close eye on developments both domestically and globally.
For ongoing updates on market trends and financial news, stay tuned!
