Sensex, Nifty Rally on Reliance Surge and Positive Asian Market Cues
Indian benchmark indices opened higher on Monday, buoyed by strong Q4 results from Reliance Industries Limited (RIL) and positive trends in Asian markets, despite geopolitical tensions.
The S&P BSE Sensex surged 558.35 points to 79,770.88, while the NSE Nifty50 rose 155.75 points to 24,195.10 as of 9:47 am. Heavyweight Reliance Industries led the rally, gaining nearly 3% in early trade following its better-than-expected quarterly earnings.
Mahindra & Mahindra, Tata Steel, ICICI Bank, and State Bank of India were among the other notable gainers on the Sensex, reflecting broad-based buying across key sectors.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that heightened Indo-Pak tensions could impact markets.
“It is difficult to judge how much the market has discounted. The resilience suggests the market has not fully priced in a conflict scenario,” he said. “Markets have an uncanny ability to climb many walls of worries.”
Despite concerns, the overall market sentiment remained optimistic, supported by strong foreign institutional investment flows.
Sustained buying by foreign institutional investors (FIIs) played a crucial role in the market’s resilience. According to Vijayakumar, FIIs invested ₹32,465 crore over the past eight days, reversing a trend of prolonged selling.
“This shift is driven by the underperformance of US stocks, bonds, and the dollar. A weakening US economy and dollar depreciation could keep FIIs interested in Indian markets,” he added.
Almost all sectoral indices traded in the green, with Nifty Consumer Durables, Nifty PSU Bank, and Nifty Oil & Gas leading the gains. The Nifty Midcap100 rose 0.73%, and the Nifty Smallcap100 added 0.41%, signaling strong interest across market capitalizations.
Healthcare, Pharma, Private Banks, Auto, Realty, and Metals sectors also posted gains between 0.5% and 1.2%.
The only sector under pressure was Nifty IT, which slipped 0.65% amid ongoing concerns about global tech spending.
While markets reacted positively to corporate earnings and global cues, tensions between India and Pakistan following the Pahalgam terror attack continue to loom over investor sentiment. Experts warn that further escalation could trigger volatility.
Analysts remain cautiously optimistic, with market participants closely monitoring geopolitical developments and upcoming earnings reports.
“The next few sessions will be critical in gauging whether this positive momentum can sustain against external risks,” Vijayakumar said.
