Sharp uptick: Sensex, Nifty score biggest 5-session win in over 4 years

Optimism from progress in trade talks with the US and expanded reciprocal tariff exemptions further fuelled investor enthusiasm

The Indian equity benchmarks powered ahead on Monday, notching up their strongest five-day rally in four years. A mix of heavyweight buying, a softer dollar, and easing crude oil prices helped bolster investor sentiment. Optimism from progress in trade talks with the US and expanded reciprocal tariff exemptions further fuelled the rally.

 

The Sensex rose 855 points, or 1.1 per cent, to close at 79,409, while the Nifty 50 climbed 274 points, or 1.2 per cent, to 24,126 — surpassing the 24,000 mark for the first time since early January. In the past five sessions, the Sensex and the Nifty have jumped 7.5 per cent and 7.7 per cent respectively, clocking their best stretch since February 5, 2021.

 

A selloff in US assets, however, deepened and Wall Street indices were sharply down in early trade.  

 

The total market capitalisation of firms listed on the BSE crossed the $5 trillion mark -- a level last seen on January 9. Over the past five sessions, the market value of domestic firms has risen by nearly half a trillion dollars.

 

Banking stocks have been at the forefront of this rally, with the Nifty Financials index soaring nearly 10 per cent to hit fresh record highs.

 

Leading the charge on Monday was HDFC Bank, up 1.1 per cent, with Reliance Industries and Infosys close behind. Axis Bank and Kotak Mahindra Bank also chipped in. Banking counters were buoyed by buying from foreign portfolio investors (FPIs) and optimism around earnings, especially after the recent cuts in savings deposit rates. 

 

On the day, FPIs were net buyers of ₹1,970 crore, while domestic institutional investors picked up stocks worth ₹247 crore.

 

“HDFC Bank’s post-merger stagnation has eased, with its March quarter growth resonating with the markets,” said Chokkalingam G, founder of Equinomics. “Private banks are poised for double-digit growth this financial year, supported by moderating inflation, falling oil prices, and potential interest rate cuts. Lower deposit rates and the sector’s domestic focus, insulated from tariff wars, further bolster sentiment.” 

 

A weaker US dollar added to the bullish sentiment, with the dollar index slipping to 98.2 -- its lowest since March 2022 -- prompting risk appetite for emerging markets like India. The MSCI Emerging Markets Index gained 2.2 per cent between April 11 and 18. The greenback’s slide has been linked to unease around potential leadership changes at the US Federal Reserve, with President Donald Trump voicing criticism of the Fed’s hesitancy to lower rates -- fuelling fears of politicised monetary policy and shaking confidence in the dollar.

 

Meanwhile, gold hit a record $3,411 per ounce, and Brent crude nearly 3 per cent to $66.06 a barrel (8.15 pm IST).

 

The market’s trajectory, according to analysts, will now hinge on India Inc’s Q4 earnings season and the outcome of trade negotiations with the US. “Optimism surrounds US Vice President J D Vance’s four-day visit to India, with hopes around a bilateral trade deal,” said Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services. “We expect positive momentum to persist, driven by strong domestic cues and stock-specific movements tied to earnings.”

 

The market breadth was firmly positive, with 2,903 stocks advancing while 1,199 declining. Still, the Nifty 50 trades about 8 per cent below the record high it touched on September 27.