Stock market today : Indian equity benchmark indices, BSE Sensex and Nifty50 , opened in green and rallied strongly on Monday. While BSE Sensex went above 80,300, Nifty50 crossed 24,350. At 12:37 PM, BSE Sensex was trading at 80,283.61, up 1,071 points or 1.35%. Nifty50 was at 24,344.85, up 306 points or 1.27%.
The benchmark indices were propelled by Reliance Industries' strong earnings report and favourable signals from Asian markets, while investors remained watchful of India-Pakistan relations.
All sectoral indices, except Nifty IT, showed positive movement, with Nifty PSU Bank, Consumer Durables, Oil & Gas, and Private Bank indices each advancing more than 1%.
The total market value of BSE-listed companies increased by Rs 2.9 lakh crore, reaching Rs 424.46 lakh crore.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “The heightened uncertainty relating to Indo-Pak tensions will weigh on the markets. It is very difficult to judge how much the market has discounted. Going by the resilience of the market, it can be said that the market has not discounted a scenario of the tensions culminating in a war between the two countries. It is important to remember that markets have an uncanny ability to surprise by climbing many walls of worries.
Why is the stock market rallying today?
1) RIL's Q4 performance exceeds expectations
Reliance Industries shares increased by 4% following their quarterly results, which surpassed analyst estimates, supported by strong retail and digital segment performance. The company's positive results contributed approximately 300 points to the Sensex increase.
According to an ET report, Nomura's analysis highlighted strong performance across divisions and identified three key catalysts: expansion of new energy operations, potential Jio price increases, and a possible Jio listing or IPO that could enhance Reliance's value.
JP Morgan's assessment suggested potential share price appreciation for Reliance, citing current attractive valuations.
2) FII's Sustained Investment Pattern
The market's stability is significantly influenced by Foreign Institutional Investors (FIIs), who have invested Rs 32,465 crore in the past eight days.
"FIIs have dramatically reversed their selling strategy and turned sustained buyers. This shift is driven by the relative underperformance of US stocks, bonds, and the dollar. In a weakening US economy and depreciating dollar environment, FIIs may continue to buy, providing further support to the market," said VK Vijayakumar.
3) Dollar's Declining Trend
The declining value of the dollar has enhanced investor confidence in emerging markets, including India. The reduced dollar value tends to attract foreign investments and benefits the rupee's position.
The dollar index registered 99.60 on Monday, showing a reduction from 109.88 in early February. This reduction has increased interest in risk-based assets, particularly affecting currency-sensitive sectors such as metals.
4) Oil Market Dynamics
Crude oil prices declined below $67 per barrel on Monday, providing relief to inflation worries. Brent crude stood at $66.06, whilst U.S. West Texas Intermediate remained at $63.34. The reduced oil prices benefit India, a significant oil importing nation, by alleviating strain on its current account and inflation levels.
5) Global Markets
Indian markets advanced alongside other Asian counterparts. Initial trading activity remained subdued, with MSCI's broadest index of Asia-Pacific shares outside Japan rising 0.1%. Japan's Nikkei advanced 0.9%, and South Korea strengthened 0.2%.
EUROSTOXX 50 futures increased 0.3%, whilst FTSE futures and DAX futures both gained 0.2%.
Concurrently, U.S. President Donald Trump reported advancement in trade discussions with China and other nations, although concrete evidence remains limited.
"It is important to remember that markets have an uncanny ability to surprise by climbing many walls of worries," said Vijayakumar.
The benchmark indices were propelled by Reliance Industries' strong earnings report and favourable signals from Asian markets, while investors remained watchful of India-Pakistan relations.
All sectoral indices, except Nifty IT, showed positive movement, with Nifty PSU Bank, Consumer Durables, Oil & Gas, and Private Bank indices each advancing more than 1%.
The total market value of BSE-listed companies increased by Rs 2.9 lakh crore, reaching Rs 424.46 lakh crore.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “The heightened uncertainty relating to Indo-Pak tensions will weigh on the markets. It is very difficult to judge how much the market has discounted. Going by the resilience of the market, it can be said that the market has not discounted a scenario of the tensions culminating in a war between the two countries. It is important to remember that markets have an uncanny ability to surprise by climbing many walls of worries.
Why is the stock market rallying today?
1) RIL's Q4 performance exceeds expectations
Reliance Industries shares increased by 4% following their quarterly results, which surpassed analyst estimates, supported by strong retail and digital segment performance. The company's positive results contributed approximately 300 points to the Sensex increase.
According to an ET report, Nomura's analysis highlighted strong performance across divisions and identified three key catalysts: expansion of new energy operations, potential Jio price increases, and a possible Jio listing or IPO that could enhance Reliance's value.
JP Morgan's assessment suggested potential share price appreciation for Reliance, citing current attractive valuations.
2) FII's Sustained Investment Pattern
The market's stability is significantly influenced by Foreign Institutional Investors (FIIs), who have invested Rs 32,465 crore in the past eight days.
"FIIs have dramatically reversed their selling strategy and turned sustained buyers. This shift is driven by the relative underperformance of US stocks, bonds, and the dollar. In a weakening US economy and depreciating dollar environment, FIIs may continue to buy, providing further support to the market," said VK Vijayakumar.
3) Dollar's Declining Trend
The declining value of the dollar has enhanced investor confidence in emerging markets, including India. The reduced dollar value tends to attract foreign investments and benefits the rupee's position.
The dollar index registered 99.60 on Monday, showing a reduction from 109.88 in early February. This reduction has increased interest in risk-based assets, particularly affecting currency-sensitive sectors such as metals.
4) Oil Market Dynamics
Crude oil prices declined below $67 per barrel on Monday, providing relief to inflation worries. Brent crude stood at $66.06, whilst U.S. West Texas Intermediate remained at $63.34. The reduced oil prices benefit India, a significant oil importing nation, by alleviating strain on its current account and inflation levels.
5) Global Markets
Indian markets advanced alongside other Asian counterparts. Initial trading activity remained subdued, with MSCI's broadest index of Asia-Pacific shares outside Japan rising 0.1%. Japan's Nikkei advanced 0.9%, and South Korea strengthened 0.2%.
EUROSTOXX 50 futures increased 0.3%, whilst FTSE futures and DAX futures both gained 0.2%.
Concurrently, U.S. President Donald Trump reported advancement in trade discussions with China and other nations, although concrete evidence remains limited.
"It is important to remember that markets have an uncanny ability to surprise by climbing many walls of worries," said Vijayakumar.
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