Stock Markets Rally for 6th Straight Session: Sensex Jumps 900 Points, Nifty Tops 23,600

Indian Markets Continue Winning Streak Amid Strong Buying Sentiment

Indian stock markets extended their gains for the sixth straight session on Monday, with both the Sensex and Nifty rising over 1% on the back of strong foreign inflows, surging banking stocks, and positive global cues.

At 11 AM, the BSE Sensex surged 938.33 points (1.22%) to reach 77,843.84, while the NSE Nifty climbed 280 points (1.19%) to touch 23,630.40. The broader market also reflected bullish sentiment, with 2,579 stocks advancing, 904 stocks declining, and 147 remaining unchanged.

Among the top performers were Kotak Mahindra Bank, Power Grid, Larsen & Toubro, Axis Bank, and SBI Life Insurance, each gaining up to 3% during intraday trading.

Drivers Behind the Market Rally

1. Resumption of Foreign Portfolio Investments (FPIs)

One of the biggest catalysts behind the rally has been the easing of foreign fund outflows. On Friday, FPIs pumped in ₹7,470.36 crore, largely attributed to the FTSE March review, which resulted in fresh inflows into the Indian market.

Market experts suggest that this reversal in FPI trends has restored investor confidence, which had been shaken due to persistent foreign fund selling since October 2024.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the return of FPIs is a sign of robust domestic economic growth, easing inflation, and a weaker U.S. dollar, all of which contribute to a positive market outlook.

2. Indian Rupee Gains Strength Against U.S. Dollar

The Indian rupee appreciated by 12 paise, strengthening to 85.86 against the U.S. dollar on Monday. This comes as a major relief for equity investors, as a stronger rupee boosts foreign investment inflows into Indian markets.

Analysts attribute this currency appreciation to strong domestic equity flows and improved economic stability, which in turn enhanced investor sentiment in the stock market.

3. Global Market Cues Remain Supportive

Indian markets were also influenced by positive global sentiment, with U.S. stock futures rising amid speculation that Donald Trump’s potential tariff measures would have a selective impact on global trade.

• Dow Jones Futures gained 0.47% at 10 AM on Monday.

• S&P 500 closed at 5,667.56 (+0.1%) on Friday.

• Nasdaq Composite jumped 0.5% to 17,784.05.

While global investors remain watchful of the April 2 deadline for potential U.S. tariff actions, the overall outlook appears favorable for equity markets.

4. Banking Stocks Lead the Market Surge

One of the biggest contributors to the market rally has been the banking sector, with the Nifty Bank index skyrocketing by 1,000 points, reaching an intraday high of 51,635.

Top banking gainers included:

• Kotak Mahindra Bank

• Canara Bank

• Punjab National Bank

According to Hardik Matalia, Derivative Analyst at Choice Broking, the Nifty Bank index has managed to sustain above key technical levels (20-day, 50-day, and 200-day EMAs).

• Immediate resistance levels: 51,000 and 51,750

• Support levels: 50,000 and 49,700

• Crucial breakdown point: 49,000

If the Nifty Bank index continues its upward trajectory, it could soon test its all-time high of 54,500.

5. Improving Investor Sentiment and Strong Market Performance

Last week, Indian markets recorded one of their best performances in months:

• Sensex jumped 3,076.6 points (+4.16%)

• Nifty surged 953.2 points (+4.25%)

Market analysts expect this uptrend to continue, as foreign institutional investors (FIIs) return to the Indian market, lured by attractive valuations and signs of economic recovery.

According to Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, the bullish market sentiment is driven by:

• Robust Q4 earnings expectations

• Strong macroeconomic fundamentals

• Government reforms in key sectors

Technical Indicators Suggest Scope for Further Gains

Analysts tracking market trends suggest that the Nifty 50 index is nearing a critical technical milestone.

According to Anand James, Chief Market Strategist at Geojit Financial Services, the Nifty index has been trading above the upper Bollinger Band for three consecutive sessions.

• The index had initially set a 23,450-23,807 trading range last week.

• 60% of Nifty 50 stocks are yet to break past their upper bands, leaving room for new market leadership to emerge.

• If Nifty fails to push beyond the 23,500 mark, it may trigger a correction towards 23,160.

However, as long as the momentum remains intact, markets are likely to continue their upward trajectory in the coming sessions.