The Sensex and Nifty indices rebounded over 1% on Monday, driven by a strong performance from Reliance Industries, supported by robust foreign inflows. This market rally came amid a holiday-shortened week and a firm trend in global markets, adding further momentum to domestic equities.
Market Update: The BSE Sensex surged 860.58 points, or 1.08%, reaching a high of 80,073.11, while the NSE Nifty gained 243.65 points, or 1.01%, climbing to 24,283.00.
Key Factors Behind the Rally:
- Reliance Industries Boosts the Market: The standout performer was Reliance Industries, which saw a 4% rise in its shares. This surge came after the company reported stronger-than-expected Q4 earnings for the fiscal quarter ending March 31, 2025. The company posted a 2.4% increase in net profit, reaching Rs 19,407 crore, driven by growth in its digital services, retail, and oil-to-chemicals businesses. The 8.8% rise in revenue to Rs 2.88 lakh crore contributed significantly to the market rally.
- Easing of Geopolitical Concerns: Despite recent tensions between India and Pakistan, market sentiment seems to have stabilised. Investors are shrugging off fears of a potential conflict between the two nations, which had led to profit-taking in previous sessions. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, remarked that the market has shown resilience and is not currently factoring in the possibility of a full-scale war.
- Strong Foreign Institutional Investor (FII) Inflows: Foreign investors have made a strong return to Indian markets, with FIIs purchasing equities worth Rs 2,952.33 crore last Friday. In the previous week, they invested Rs 17,425 crore, driven by a combination of positive global cues and strong domestic economic indicators. This marks a shift from their earlier trend of sustained selling. According to Vijayakumar, the weakening US economy and depreciating dollar have led FIIs to favour Indian stocks.
- Positive Global Market Sentiment: Global markets, particularly in Asia and the US, have provided a boost. Asian indices like South Korea’s Kospi and Tokyo’s Nikkei 225 have seen positive movement, while the US markets posted significant gains on reports of easing trade tensions between the US and China.
Technical Outlook: According to Anand James, Chief Market Strategist at Geojit Investments, the current market pattern shows an evening star formation, which suggests a possible downtrend in the short term. However, support levels are expected to hold around 23,670, with a potential for the Nifty to resume its uptrend if it stays above 24,190. The 24,500-24,850 range could come back into focus if the market sustains this momentum.
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