The Indian stock markets lit up on Monday as the Sensex surged over 1,000 points to cross the historic 80,000-mark, while the Nifty raced ahead by more than 300 points to touch 24,340. The strong rebound came amid sustained foreign institutional investment and resilient domestic fundamentals, restoring investor confidence after last week’s volatility.
By 12:30 PM, the 30-share BSE Sensex was up significantly, offering a fresh breath of optimism to traders and long-term investors alike.
Reliance, Banks Lead the Charge
Heavyweights such as Reliance Industries, Mahindra & Mahindra, ICICI Bank, Tata Steel, State Bank of India, Kotak Mahindra Bank, IndusInd Bank, Larsen & Toubro, and NTPC spearheaded the rally. Their robust performances played a major role in pushing the indices into uncharted territory.
On the other hand, HCL Tech, Tech Mahindra, Tata Consultancy Services, Bajaj Finance, and Nestle found themselves in the laggards’ column, showing a rare underperformance amid the broader market optimism.
The Force Behind the Rally: Foreign Investment Surge
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, attributed the market’s remarkable resilience to continued foreign fund inflows. According to him, relative underperformance in US equities, bonds, and the dollar made Indian markets an attractive proposition for global investors.
Data from the exchanges backs this view. On Friday alone, Foreign Institutional Investors (FIIs) pumped in equities worth Rs 2,952.33 crore, a robust inflow despite geopolitical tensions following a terror attack in Pahalgam, Jammu and Kashmir.
Furthermore, FIIs poured in a staggering Rs 17,425 crore into Indian equities last week, bolstered by favorable global conditions and strong domestic economic indicators. This followed a Rs 8,500 crore net investment during the holiday-truncated week ending April 18.
A Sharp Rebound from Friday’s Setback
Friday had seen the markets stumble, with the Sensex dropping 588 points (0.74 percent) to close at 79,212, and the Nifty falling by 207 points (0.86 percent) to end at 24,039. However, Monday’s sharp turnaround has not only wiped out those losses but also set new benchmarks.
Looking Ahead
With foreign investments showing no signs of slowing and domestic growth indicators remaining strong, the mood in Dalal Street appears upbeat. Yet, analysts warn that global volatility and local political developments could inject some uncertainty in the near term.
For now, though, the markets are basking in the glow of a historic milestone, with the Sensex’s climb beyond 80,000 standing as a testament to the growing confidence in India’s economic story.
