Sensex jumps 1080 pts, Nifty tops 24,180: Why stock market rose on Monday?

Why markets are rising today: The benchmark BSE Sensex jumped 879 points intraday to hit a high of 79,432.78 level, while the Nifty50 index gained 281 points to a high of 24,132.75

Stock market today: The Indian stock markets witnessed a sharp rally on Monday, April 21, 2025, rising for the fifth consecutive session, amid expectations of a trade agreement with the United States, strong quarterly performance by large private banks and foreign investors turning net buyers. 

 

The benchmark BSE Sensex jumped 1,081 points i0r 1.08 per cent to hit an intra-day high of 79,635.05 level, while the Nifty50 index gained 337.90 points or 1.41 per cent to a high of 24,189.55.

 

At close, Sensex was at 79,408.50, up 855.30 points, or 1.09 per cent, and Nifty50 at 24,125.55, higher by 273.90 points, or 1.15 per cent.

 

In the broader market, Nifty Midcap100 and Nifty Smallcap100 settled with gains of 2.50 per cent and 2.21 per cent, respectively. Of the 3,014 stocks traded on the NSE today, 2,251 stocks settled in green, 683 were in red, and 80 remained unchanged on Monday.

 

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"Even though the global economic scenario is mired in uncertainty, India appears relatively resilient. India is the only large economy which can grow at 6 per cent even in a slowing global economy. This, along with the declining dollar, has the potential to attract more FPI inflows into India in the short run," said VK Vijayakumar, chief investment strategist at Geojit Investments Limited.

 

Among individual stocks IndusInd Bank, Axis Bank, Tech Mahindra, Bajaj Finserv, State Bank of India, Trent, JSW Steel, Mahindra & Mahindra, ONGC, and Shriram Finance were the top gainers on the Nifty50 today, surging in the range of 2 per cent to 5 per cent.  Also Read: Q4 Results Today

 

Here are the key reasons behind Sensex, Nifty rally today:

Hopes around India US trade agreement:

US vice president JD Vance's four day-visit to India began today, where he is scheduled to meet Prime Minister Narendra Modi amid efforts for an early trade agreement with the US, and improve relations with the Trump administration, as India seeks to avoid significantly harsh US reciprocal tariffs.   "The possibility of India striking a deal with the US in the next few months is being perceived by the market as positive. Viewed from the perspective of the short-term market construct it is Advantage India." Vijayakumar said.

 

Rally in bank stocks:

The Nifty Bank index touched a record high of 55,386.45, rising 2 per cent on the NSE, after index heavyweights HDFC Bank and ICICI Bank beat market estimates in March 2025 quarterly (Q4 FY25) results. The index crossed its previous high of 54,467.35, which it touched on September 26, 2024. Shares of HDFC Bank jumped nearly 2 per cent to hit an all-time high of ₹1,950.70 on the NSE. Similarly, ICICI Bank, the country's second-largest private sector lender, jumped around 2 per cent to hit all-time high of ₹1,436.

 

 

Foreign investors' comeback:

Following the continued selling in the first half of April 2025, foreign portfolio investors (FPIs) have turned net buyers again in Indian markets. During the last three trading days, FIIs bought equities worth ₹14,760 crore in the cash market led by a decline in the dollar index to around 100 level and the expectation of further weakness in the dollar.

"Two, both the US and China will report subdued growth this year while India is expected to clock a growth rate of 6 per cent in FY26 even in an unfavourable global environment. This relative outperformance of India in growth can lead to outperformance in the market, too. Therefore, the FII buying trend can sustain even in this uncertain environment," said Vijayakumar.  The focus of all investors including FIIs is likely to be domestic consumption themes like financials, telecom, aviation, cement, select autos and healthcare, he added.

Nifty share price: Technical levels  Nifty has crossed above its 200-day moving average at 24,050, indicating a strong bullish signal. "A close above the 24,000 mark today would confirm this strength and open the path towards 24,200–24,300 levels in the near term. Traders are advised to maintain a strict stop loss at 23,900, as a break below this level could negate the positive momentum. Overall, the trend remains positive with buying on dips favored," said Riyank Arora, technical analyst at Mehta Equities.