Sensex Soars 800 Points, Nifty Crosses 24,100 as Financial Stocks Lead Market Rally

Sensex Surges 800 Points, Nifty Breaches 24,100 Mark as Banking Stocks Lead Market Rally

Indian equity markets started the week on a robust note with the Sensex soaring over 800 points and the Nifty reclaiming the 24,000-mark after nearly four months. Banking and financial stocks emerged as the key drivers of Monday's rally, supported by strong quarterly results from sector heavyweights and renewed foreign investor interest.

Market Performance Highlights

On Monday, April 21, 2025, Indian benchmark indices demonstrated significant strength:

• The BSE Sensex jumped 803.89 points or 1.02% to reach an intraday high of 79,357.09
• The NSE Nifty climbed 250.3 points or 1.04% to touch 24,101.95, breaching the 24,000 level for the first time since January 6, 2025
• Bank Nifty index touched a record high of 55,200, reflecting the strong performance of banking stocks

Key Factors Driving the Market Rally

1. Banking Sector Outperformance

Financial stocks emerged as the cornerstone of Monday's market surge, with several factors contributing to their strong performance:

• Impressive Q4 Results: ICICI Bank and HDFC Bank's better-than-expected quarterly performance boosted investor confidence in the banking sector
• Improved Metrics: Positive commentary around enhanced net interest margins (NIMs), stable asset quality, and attractive valuations supported the banking rally
• Broad-based Gains: IDFC First Bank, Axis Bank, IndusInd Bank, and AU Small Finance Bank were among the significant contributors to the Bank Nifty's record high

According to Devarsh Vakil, Head of Prime Research at HDFC Securities, "Quarterly numbers from the big private banks were in line and will continue to support the ongoing rally."

2. Renewed Foreign Fund Inflows

After a period of outflows, foreign portfolio investors (FPIs) have returned to the Indian market:

• Net Investment: FPIs pumped in Rs 8,472 crore in the holiday-shortened week ended April 18
• Strong Recovery: Despite pulling out Rs 2,352 crore on April 15, they invested Rs 10,824 crore over the next two sessions
• Improved Sentiment: The flows reflect growing confidence in India's growth outlook and stable macroeconomic environment

Himanshu Srivastava, Associate Director – Manager Research at Morningstar India, noted that "The renewed FPI interest suggests a potential shift in sentiment, but global cues will remain key in determining the pace of these flows."

3. Positive Global and Domestic Developments

Several additional factors contributed to the market's positive mood:

• India-US Trade Pact: Reports that India and the United States have agreed on a framework for a bilateral trade agreement covering 19 key chapters, including goods, services, and investments
• US-China Trade Dialogue: Indications of possible progress in trade negotiations between the US and China, with both sides reportedly in contact to ease tensions
• Rupee Appreciation: The Indian rupee gained 33 paise to reach 85.05 against the US dollar in early trade, supported by a decline in the dollar index and fresh foreign inflows

Technical Outlook

Market experts remain cautiously optimistic about the near-term trajectory:

Anand James, Chief Market Strategist at Geojit Financial Services, observed that while the Nifty remains close to its previous peak and may see mild pullbacks, "Though hourly charts indicate exhaustion, the upward curve in Bollinger bands and the absence of overbought signals on oscillators keep the door open for more gains."

He added that dips towards the 23,700–23,600 range may act as support levels, and a sustained move beyond 24,000 could resume if selling pressure remains limited.

Market Breadth and Top Gainers

The market rally was led by several prominent stocks:

• Top gainers included Tech Mahindra, Axis Bank, HDFC Bank, Infosys, State Bank of India and IndusInd Bank
• HDFC Bank shares rose 1.23% to Rs 1,930.20, building on positive momentum following its Q4 results

With the strong performance of banking stocks and positive global cues, market participants will be closely watching whether this momentum can be sustained in the coming sessions as more companies announce their quarterly results.

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Categories: banking stocks performance, market rally, Nifty 24000, Sensex rally