The Sensex reclaims the key 80,000 mark after 73 trading sessions or 110 days. It has last hit the key levels on January 3, 2025. The nifty too saw brisk upswing and traded comfortably above the 24,300 mark led by the tech stocks. The Nifty IT Index has been the star performer, rising as much as 3% intra-day. The big winners include the likes of HCL Tech, Tech Mahindra and Wipro.
While analysts had expected some near-term volatility due to unfortunate terrorist attack in Pahalgam, broadly they believe the fundamental factors will help maitain the market momentum.
According to VK Vijayakumar, Chief Investment Strategist, Geojit Investments, “Terror attacks while succeeding in taking precious human lives cannot succeed in even marginally impacting our economy and markets. Pakistan’s political instability and basket case economy cannot do any damage to Indian economy and markets. Markets may send this message today and the fundamental factors are favourable. President Trump’s message that he has no intention of firing the Fed chief has calmed the US markets. Trump’s remarks on Chinese tariffs indicate that he might reduce the US-China tensions. The sustained buying by FIIs is a strong support to Indian markets.
Five reasons why the markets are surging today
There are a host of global and local triggers for the massive rally in the markets-
1. Trump says no intention to fire Fed Chief: US Stock Futures are up smartly after the US President Donald Trump indicated that he has no plans to remove Jerome Powell, the Federal Reserve Chairman from his post. Not only did the new cheer US Futures, it also added to the positive sentiment across India.
2. Signs of de-escalation of tariff war between US-China: One of the key reasons why US markets rallied was on the bac of U.S. Treasury Secretary Scott Bessent’s comments that “he believes there will be a de-escalation in U.S.-China trade tensions.” As per the Reuters report, he indicated that the negotiations with China have not started yet.
3. Massive rally across US markets: US markets saw a massive rally last night. The Dow, S&P and Nasdaq all ended with over 2% gains each. In fact, the Dow ended its 4-day losing streak with over more than 1,000 points rally.
4. Elon Musk says will focus more on Tesla: Addressing the analysts call after Tesla results, Elon Musk outlined that starting May he plans spend less time for Doge and will focus more on Tesla. The chief of the EV company Tesla also outlined the plans after Tesla’s profit skid a whopping 71%. The statement is seen as sentiment booster.
5. FIIs net buyers in Indian market for 5 consecutive days: This has been decidedly one of the big triggers from sentiment improving in the Indian markets. FIIs have been net sellers for the last 5 sessions and they have bought a total of over Rs 18,000 crore worth equities in the Indian markets today.
Series of market rally in last 1 year
If we track the Sensex movement in past few months, the Sensex rallied between March 4 (when it opened at 72,817.34) to Match 25, closing at 78,017.19. This surge resulted in a 7.14% increase, equivalent to a gain of 5,199.85 points.
The largest recent upward movement in the Nifty commenced on June 5, 2024, with an opening of 22,128.35, culminating on September 26, 2024 with a closing of 26,216.05. This surge resulted in an 18.47% increase, a gain of 4,087.70 points.
The Sensex also experienced its most substantial recent rally starting on June 5, 2024, opening at 73,027.88 and concluding on September 26, 2024 at a closing value of 74,382.24. This rally marked a significant rise of 12,808.24 points, translating to a 17.54% increase.