SOURCE : NEW18 NEWS
Last Updated:April 28, 2025, 15:51 IST
Benchmark indices staged a strong rebound on Monday, bouncing back decisively from last session’s weakness; Know key reasons behind the rally
Know key reasons behind stock market rally today
Why Is Sensex, Nifty Rising Today? Benchmark indices staged a strong rebound on Monday, bouncing back decisively from last session’s weakness.
The BSE Sensex rose over 1,000 points, or 1%, to trade above 80,200 level, while the Nifty50 gained nearly 300 points, to trade above 24,300 level around 12:20 pm.
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The market capitalisation of all listed companies on BSE surged by Rs 2.9 lakh crore to Rs 424.46 lakh crore.
All broader market indices were also firmly in the green, pointing to robust market sentiment.
From the Sensex pack, Reliance Industries, M&M, SBI, and ICICI Bank opened 1–2% higher, while HCL Tech, Nestle India, Maruti Suzuki, Asian Paints, and UltraTech Cement traded with losses.
Reliance Industries was the top gainer after posting a fourth-quarter profit that beat estimates, driven by strong growth in its retail and digital services businesses.
Barring Nifty IT, all sectoral indices traded in the green, with the Nifty PSU Bank, Consumer Durables, Oil & Gas, and Private Bank indices surging over 1%.
Key Factors Behind Stock Market Rally On April 28
RIL’s Strong Q4 Results Drive Sensex Rally
Shares of Reliance Industries surged by 4% after the company reported better-than-expected Q4 profits, fueled by robust performances in its retail and digital businesses. This stellar performance contributed nearly 300 points to the Sensex rally.
Brokerage firm Nomura pointed to solid results across multiple segments and highlighted three key near-term triggers for Reliance: scaling up its new energy business, potential tariff hikes for Jio, and the possibility of a Jio IPO or listing, which could unlock significant value for the company.
JP Morgan also expressed optimism, suggesting that Reliance shares could see further upside due to attractive valuations in the near term.
FII Buying Supports Market Resilience
A key factor driving market stability has been the sustained buying by Foreign Institutional Investors (FIIs), with a total of ₹32,465 crore invested over the past eight days.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that FIIs have reversed their previous selling strategy, becoming consistent buyers. This shift is largely attributed to the relative underperformance of US stocks, bonds, and the dollar. “In a weakening US economy and a depreciating dollar environment, FIIs may continue their buying spree, which will provide further support to the Indian market,” he explained.
Weaker Dollar Boosts Emerging Markets Sentiment
A declining US dollar has also helped improve investor sentiment in emerging markets like India. A weaker dollar tends to increase foreign inflows and supports the rupee.
As of Monday, the dollar index stood at 99.60, down from 109.88 in early February. This decline has heightened risk appetite, particularly in sectors like metals, which are sensitive to currency fluctuations.
Crude Oil Prices Ease Inflation Concerns
Crude oil prices continued to hover below $67 per barrel on Monday, alleviating inflationary pressures. Brent crude was priced at $66.06, while U.S. West Texas Intermediate stood at $63.34. For India, a major oil importer, lower oil prices help reduce pressure on the current account and curb inflation, providing relief to the economy.
Global Markets
Meanwhile, Asian markets edged higher on the day in a cautious start amid continued uncertainty over US trade policy.
U.S. President Donald Trump on Friday asserted that tariff negotiations were underway with China, which Beijing denied, marking the latest in a series of conflicting signals over the progress of de-escalation of a trade war threatening to sap global growth.
