Sensex Jumps Over 650 Points, Rises for 6th Straight Day: Key Factors Behind the Rally
The Indian stock market extended its winning streak for the sixth consecutive day on Monday, with the S&P BSE Sensex gaining 648.18 points to close at 77,553.65 and the NSE Nifty50 rising 194.95 points to 23,545.35. Strong performances in banking and financial stocks, coupled with renewed buying by Foreign Institutional Investors (FIIs), fueled the rally. Analysts, however, cautioned investors about potential uncertainties looming ahead.
The Sensex opened at 77,456.27 and touched an intraday high of 77,585.67 during early trade, reflecting robust investor sentiment. Similarly, the Nifty50 started at 23,515.40 and peaked at 23,559.90. All sectoral indices traded in the green, with banking and financial stocks leading the charge as of 10:10 AM.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investment Services, attributed the rally to improving economic conditions and attractive stock valuations. “Improving macros of the Indian economy and fair valuations have turned FIIs from sellers to buyers. This has triggered massive short covering, leading to sharp spikes in prices,” he said. FIIs bought stocks worth Rs 3,255 crore on March 21, despite selling Rs 31,718 crore earlier in the month.
ALSO READ | Mumbai’s Habitat Studio Shuts Down After Sena Workers’ Vandalism Over Kunal Kamra Row
Analysts highlighted positive domestic economic indicators as a key driver. “Indian macros are turning positive. Our tax revenues are quite strong, and the market has been able to withstand the 23,000 level,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. He also noted that Indian markets have outperformed the US recently, benefiting from a shift in focus towards emerging markets.
Despite the bullish trend, experts urged caution due to global uncertainties. Dr. Vijayakumar warned, “April 2nd—the reciprocal tariffs day—is looming large, and the uncertainty surrounding that is huge.” Bathini added that geopolitical issues and the potential US trade war under Trump could impact markets, alongside the upcoming Q4 earnings season.
With the Nifty holding above the 23,000 mark, analysts expect the positive momentum to continue in the short to medium term, provided global factors remain stable. The upcoming quarterly results are likely to play a crucial role in determining whether the rally sustains, while investors await clarity on international trade developments.
