 "Bulls lift Nifty 50 into the green for 2025 as FPIs throng markets")
Indian equities surged for a sixth straight session on Monday, fuelled by hopes that US President Donald Trump’s next round of trade tariffs would be more measured than initially feared. Renewed appetite for beaten-down stocks and a revival in foreign inflows added to the rally.
The Sensex jumped 1,079 points, or 1.4 per cent, to close at 77,894, while the Nifty 50 gained 308 points, or 1.3 per cent, to 23,658 — wiping out its losses for the calendar year 2025. Both indices have climbed 5.6 per cent over the past six sessions but remain about 10 per cent below their late-September record highs.
The market capitalisation of BSE-listed firms rose by ₹5 trillion ($60 billion) to ₹418 trillion. Foreign portfolio investors (FPIs) were net buyers of ₹3,056 crore ($370 million), while domestic institutions purchased shares worth ₹99 crore.
Reports suggest Trump’s reciprocal tariffs, set to be unveiled April 2, will be more targeted than sweeping, easing investor fears of a full-blown trade war. Concerns over US trade policy had earlier driven US bond yields higher and strengthened the dollar, prompting FPIs to withdraw from emerging markets.
The domestic market has rallied on value-buying as valuations returned to long-term averages and early signs of earnings recovery emerged, said Vinod Nair, head of research at Geojit Financial Services. “Increased government spending and potential monetary easing could further lift sentiment, particularly in banking, NBFCs, automotive, consumer durables, and real estate."
The Nifty 50 surged over 4 per cent last week, marking its best performance since February 2021. The Sensex posted its strongest weekly gain since July 2022. The Nifty Midcap 100 and Nifty Smallcap 100 soared 7.7 per cent and 8.6 per cent, respectively, their biggest weekly gains since 2020.
Investor sentiment turned after FPIs resumed buying last week, reversing months of selling that followed stretched valuations and weak corporate earnings.
Still, scepticism remains over the sustainability of the rally. The market tends to bounce 4-5 per cent after reaching oversold levels, but there’s little follow-through unless earnings pick up,” said a fund manager who declined to be named. “There is a bit of risk on sentiment globally, but there is no catalyst thereafter in terms of earnings.”
The India VIX or volatility index rose 9 per cent to 13.7, signalling caution after the sharp gains recently.
HDFC Bank rose 1.7 per cent, while Reliance Industries added 1.9 per cent, contributing the most to Sensex gains. Reliance shares had tumbled 24 per cent from September 27 to March 4 but have since rebounded 12 per cent.
Kotak Mahindra Bank surged over 4.5 per cent to a 41-month high after appointing Bhavnish Lathia chief technology officer. Last month, the Reserve Bank of India (RBI) lifted restrictions imposed on the private sector lender regarding issuing new credit cards and on-boarding customers digitally.
The market breadth was strong, with 2,496 stocks advancing and 1,640 declining.