Indian Markets Surge as Financial Sector Booms
Indian benchmark indices experienced a significant rally on Thursday, marking the fourth consecutive day of gains. The BSE Sensex soared by over 1,500 points, while the Nifty50 closed above the 23,850 mark. This surge was largely driven by robust buying in the financial sector, despite ongoing concerns about US tariff policies and a potential global economic slowdown.
Sensex and Nifty Performance
The 30-share BSE Sensex surged by 1,509 points, or 1.96%, closing at 78,553. Meanwhile, the broader NSE Nifty gained 414 points, or 1.77%, ending the day at 23,851. The total market capitalization of BSE-listed companies increased significantly, rising by Rs 4.33 lakh crore to reach Rs 419.33 lakh crore. This upward trend reflects strong investor confidence, particularly in the financial sector, which has been a key driver of the market’s performance.
Banking Stocks Lead the Charge
The Bank Nifty index played a pivotal role in this rally, climbing nearly 2%. Major financial stocks, including HDFC Bank and ICICI Bank, saw substantial gains ahead of their Q4 earnings reports scheduled for April 19. Collectively, these top banks contributed approximately 600 points to the Sensex’s impressive 1,200-point jump. The anticipation surrounding their earnings has heightened investor interest, further fueling the market’s upward momentum.
Foreign Institutional Investors Boost Market Confidence
Foreign Institutional Investors (FIIs) have continued their buying spree, making net purchases of Rs 3,936 crore in Indian equities on Wednesday alone. Over the past two days, FII inflows have exceeded Rs 10,000 crore, signaling strong confidence in Indian stocks. Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that FIIs are increasingly focusing on high-quality large caps, particularly in domestic consumption sectors, as the outlook for the US and China appears weaker amidst ongoing crises.
Positive Global Sentiment and Currency Factors
Asian markets also saw positive movement, with traders closely monitoring trade discussions between the US and Japan. Despite uncertainties surrounding US tariffs, Japanโs Nikkei index gained 0.7%. The US considers India one of its key allies, which could benefit India amid the ongoing US-China trade war. Additionally, the US dollar has weakened, dropping to 99.56 from 109.88 in February. A weaker dollar typically enhances the appeal of emerging markets like India, attracting foreign investments and supporting the rupee. Investor sentiment was further bolstered by US President Donald Trumpโs decision to postpone additional tariffs on 75 countries, including India, until July 9, providing a much-needed boost to global markets and supporting the Indian market’s rally.
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