The Indian equity market rallied by over 1% on Monday, driving substantial gains into the financial market. The NSE Nifty 50 surpassed the 24,000 mark for the first time since January 6, 2025, while the BSE Sensex crossed the 79,000 mark.
The BSE Sensex advanced by 803.89 points (1.02%) to register an intraday high of 79,357.09. Simultaneously, the Nifty 50 index climbed 250.3 points (1.04%), reaching a high of 24,101.95.
This move was led due to aggressive buying in banking and financial sectors. Most notable gainers include Tech Mahindra, Axis Bank, HDFC Bank, Infosys, State Bank of India, and IndusInd Bank.
Let us help you by defining some of the key factors for India’s Monday Market Rally.
Key Factors for Monday’s Market Rally
1. Financial Sector: The Bank Nifty index surged to an all-time high of 55,200, thanks to strong quarterly results from ICICI Bank and HDFC Bank. Additional support came from IDFC First Bank, Axis Bank, and AU Small Finance Bank.
Investor confidence was reinforced by optimistic commentary regarding:
- Expansion in net interest margins (NIMs)
- Attractive valuations
- Lower interest rates on savings deposits
- Stable asset quality
According to Devarsh Vakil, Head of Prime Research at HDFC Securities, “Quarterly numbers from the large private banks met expectations and are likely to sustain the ongoing market momentum.”
2. Re-entry of Foreign Investors: With a long period of net outflows, FPIs returned as net buyers, injecting ₹8,472 crore during the holiday-shortened week ending April 18. Although they withdrew ₹2,352 crore on April 15, net inflows over the subsequent two sessions amounted to ₹10,824 crore, as per depository data.
Himanshu Srivastava, Associate Director – Manager Research at Morningstar India, noted, “The renewed FPI interest suggests a potential shift in sentiment, although global macroeconomic factors will remain pivotal in shaping the trajectory of future flows.”
3. India–US Trade Pact: Investor sentiment further strengthen by reports of substantial progress in bilateral trade negotiations between India and the United States. The proposed agreement is expected to encompass 19 critical chapters covering goods, services, investments, and customs procedures, according to official sources.
4. Optimism Around US–China Trade Dialogue: Global markets responded positively to indications of renewed diplomatic engagement between the United States and China. President Donald Trump confirmed that China had extended proposals for dialogue, with both parties reportedly in contact to de-escalate trade tensions.
5. Appreciation of the Indian Rupee: The Indian rupee strengthened by 33 paise to 85.05 against the US dollar during early trade. This appreciation was supported by a weakening US dollar index, fresh foreign capital inflows, improved domestic macro-economic indicators, and a decline in global crude oil prices.
