Domestic benchmark indices, the Sensex and Nifty, gained over 1 per cent on Monday boosted by strong quarterly performance posted by large private sector lenders and renewed buying interest from foreign portfolio investors (FPIs).
The gains in the market were also driven by the hope that India may soon be able to finalise the proposed bilateral trade pact with the US, whose Vice President, J D Vance, is on a four-day visit to India.
The BSE’s 30-share Sensex rose 1.09 per cent, or 855.3 points, to close at 79,408.5. The broader Nifty gained 1.15 per cent, or 273.9 points, to end at 24,125.55. Both the indices have surged over 7.5 per cent in the last six trading sessions.
On Monday, the rose 1.87 per cent to finish at a fresh record high of 55,304.5. The banking index had last touched a record high of 54,467.35 on September 26, 2024.
The market capitalisation, or the total value of all listed shares, of the BSE-listed firms reached $ 5 trillion after three months.
“The market kicked off the week on a strong note, extending last week’s momentum with gains of over one percent. Following a gap-up opening, the Nifty moved higher, led by strength in banking and financial stocks, which lifted overall sentiment and triggered broad-based buying,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
According to Geojit Investments Ltd’s Chief Investment Strategist VK Vijayakumar, India appears relatively resilient despite the global economic scenario being mired in uncertainty.
“India is the only large economy which can grow at 6 per cent even in a slowing global economy. This, along with the declining dollar, has the potential to attract more FPI inflows into India in the short run,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
During the last two trading sessions (April 16 and 17), overseas investors bought Rs 10,824.29 crore worth of domestic stocks, according to the National Securities Depository Ltd (NSDL) data.
This buying from overseas investors came after they net sold Rs 33,927 crore of local shares between April 1 and 15. The reversal in FPIs strategy is driven by depreciating dollar on account of growth concerns in the US after President announced to levy reciprocal tariffs on its trading partners, and on escalating trade wars.
The focus of the FIIs will be the domestic consumption themes like financials, telecom, aviation, hotels, select autos, real estate, cement and health care,” Vijayakumar said.
Last week, and ICICI Bank posted quarterly results that were above market expectations. HDFC Bank reported a 6.7 per cent growth in standalone profit after tax (PAT) at Rs 17,616.14 crore, while ICICI Bank’s standalone net profit jumped 18 per cent to Rs 12,630 crore in the quarter ended March 2025.
“Large private banks have taken the lead, surging to new all-time highs. Their quarterly results over the weekend aligned with market expectations and will continue to drive markets higher,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
Analysts said that with US Vice President JD Vance’s visit to India, there is a hope that both countries can secure a quick deal and a reprieve from weightier levies while maintaining a 10 per cent baseline tariff.
“The market is also expecting a potential trade deal with the US in the near term and India is currently better prepared to gain from supply-chain relocation. India’s macro is largely stable with additional benefit from falling commodity and oil prices,” Nomura said in a report.
All broad market indices ended in green, with Nifty Midcap 100 rising 2.5 per cent and Nifty Smallcap 100 gaining 2.21 per cent.
The Nifty companies that gained the most included (5.14 per cent), ( 4.32 per cent), Bank (4.06 per cent), Power Grid Corporation (3.56 per cent), Hero Motocorp (3.49 per cent), and Bajaj Finserv (3.47 per cent).x
