Sensex soars 1,000 pts, Nifty above 24,150: Strong gains in financials among key factors behind market rally

Sensex, Nifty surged in early trade on Monday on the back of positive global cues and upbeat results of ICICI bank and HDFC bank. 

The frontline equity indices surged over 1 percent on Monday, led by strong gains in financial and IT stocks and fresh foreign fund inflows, with the Nifty reclaiming the 24,000-mark and the Sensex crossing 79,000. Nifty topped 24,000 for the first time since January 6, 2025. The markets settled higher for the 5th straight session.

Sensex jumped 855.30 points or 1.09 percent to settle above the 79,000 mark at 79,408.50. During the day, it surged 1,081.85 points or 1.37 percent to 79,635.05. The NSE Nifty climbed 273.90 points or 1.15 percent to close at 24,125.55.

Heavy buying in banking counters buoyed the overall market sentiment. Tech Mahindra, Axis Bank, HDFC Bank, Infosys, State Bank of India and IndusInd Bank were among the top gainers.

Key factors driving Monday's rally:

1) Banking stocks lead the charge: Bank Nifty index touched a record high of 55,200, supported by strong earnings from ICICI Bank and HDFC Bank. IDFC First Bank, Axis Bank, and AU Small Finance Bank were among the major contributors.

Positive commentary around improved net interest margins (NIMs), attractive valuations, lower savings deposit rates, and stable asset quality helped boost confidence in the sector. Large private lenders continued to outperform, with their results matching market expectations.

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

Banking stocks on fire: Bank Nifty scales fresh peak, tops 55,200; ICICI Bank, HDFC Bank in focus

2) Foreign fund inflows resume: After a phase of outflows, foreign portfolio investors (FPIs) turned net buyers, pumping in Rs 8,472 crore in the holiday-shortened week ended April 18. Though FPIs pulled out Rs 2,352 crore on April 15, they invested Rs 10,824 crore over the next two sessions, data from depositories showed. The flows were supported by improving sentiment around India’s growth outlook and a stable macroeconomic environment.

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

FPIs turn net buyers; inject Rs 8,500-cr in holiday-shortened week

3) India-US trade pact on track: Investor sentiment also got a boost from reports that India and the United States have agreed on a framework for a bilateral trade agreement. The pact, expected to include 19 key chapters, will cover goods, services, investment and customs processes, according to official sources.

US Vice President JD Vance is in New Delhi for the visit and is all set to hold key talks with Prime Minister Narendra Modi on Monday at 6:30 PM in the backdrop of trade deal talks between India and the United States.

India-US trade deal: Terms finalised for 19-chapter pact; high-level talks to begin in Washington from April 23, says report

4) Hopes US-China trade dialogue: Global markets remained watchful as the US and China indicated possible progress in trade negotiations. US President Donald Trump said China had made several overtures for talks, adding that both sides were in contact to ease trade tensions.

5) Rupee gains against dollar: The Indian rupee appreciated by 33 paise to 85.05 against the US dollar in early trade, aided by a decline in the dollar index and fresh foreign inflows. Forex dealers attributed the rupee’s strength to improved domestic indicators and a fall in global crude oil prices.

Sharp easing in dollar index helps rupee to open 27 paise higher

6) Crude oil prices ease: Crude oil futures on Monday declined Rs 101 to Rs 5,378 per barrel in futures trade as participants trimmed their positions tracking weak demand in the overseas market. On the Multi Commodity Exchange, crude oil for May delivery eased by Rs 101 or 1.84 percent to Rs 5,378 per barrel in 13,199 lots. Decline in crude prices is a positive sign for India as the country is a major oil importer and lower prices offer a significant relief.

Technical outlook:

Anand James, Chief Market Strategist at Geojit Financial Services, said 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 noted.

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

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