Banks, financials propel Sensex 1,509-points higher in broad-based rally

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The Indian equity markets mirrored their Asian peers, extending their winning streak for the fourth consecutive session. This rally was driven by strong buying across various sectors, particularly in financial services, banking, and pharma stocks.  The benchmarks closed higher on Thursday, with the BSE Sensex rising 1,508.91 points, or 1.96 per cent, to settle at 78,553. The day also marked a historic milestone for the BSE, as it celebrated its sesquicentennial (150th) anniversary, marking its position as Asia’s oldest stock exchange.

 

Mirroring the Sensex, the NSE Nifty50 gained 414.45 points, or 1.77 per cent, to close at 23,851.65.

 

Earlier in the day, Asian markets closed higher, with Japan's Nikkei 225 and Hong Kong's Hang Seng indices rising by over 1 per cent each, providing positive cues for the domestic market.

 

Back home, Eternal (formerly Zomato), ICICI Bank, Bharti Airtel, Bajaj Finserv, and Sun Pharma were among the top gainers on the Nifty50, all closing higher by up to 4.37 per cent.  The index heavy-weight, Reliance Industries (RIL) settled higher by 2.82 per cent.

 

In the broader market, both the Nifty Midcap and Nifty Smallcap indices ended higher, posting gains of up to 0.61 per cent. Meanwhile, the volatility index, India VIX, cooled off sharply by 2.50 per cent to 15.47 points, indicating reduced market volatility 

The Nifty Financial Services index emerged as the top gainer among the sectoral indices, ending higher by 2.27 per cent. This was closely followed by banking stocks, with the Bank Nifty and Nifty Private Bank indices rising by 2.23 per cent and 2.26 per cent, respectively. ICICI Bank, Kotak Mahindra Bank, and State Bank of India were among the top performers, gaining up to 3.37 per cent.

 

 

Vinod Nair, head of research at Geojit Investments, attributed the rally in large-cap stocks to expectations of improved margins stemming from changes in savings deposit interest rates.

 

"Positive sentiment was further supported by a reversal in Foreign Institutional Investor (FII) flows, although the sustainability of this trend remains uncertain," said Nair. Nonetheless, optimism surrounding the domestic market persists, bolstered by the expectation of a favourable outcome from US-India trade negotiations and relatively minimal disruption from the US-China trade tensions. Additionally, a moderating inflation trajectory towards more comfortable levels, Nair believes, is further enhancing market sentiment.

 

Investor sentiment, Ajit Mishra – SVP, research, Religare Broking, said, remains positive, supported by strong domestic fundamentals and the absence of any major global concerns. With the Nifty now hovering around its previous swing high near 23,800, the focus will shift to the earnings announcements from heavyweights like Infosys, HDFC Bank, and ICICI Bank on Monday.  "We continue to advocate a 'buy on dips' strategy, with a preference for rate-sensitive sectors for long trades, while remaining selective in other segments," said Mishra.

 

Notably, the Indian equity markets will remain closed on Friday, April 18, 2025, in observance of Good Friday. Trading will resume on Monday, April 21, 2025.

 

 

Nifty50 eyes 24,050

From a technical perspective, the Nifty has formed a strong bullish candle on both the daily and weekly charts, indicating underlying strength. "Sustaining above the 23,900 level, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, said, could pave the way for an extended rally towards 24,050, where the 200-Day Simple Moving Average (200-DSMA) is placed.  "A decisive move above this could open the door for a further upmove towards 24,200. On the downside, immediate support lies at 23,800, followed by 23,500," said Yedve.