The Indian domestic indices Sensex and Nifty began the new financial year on a firm footing. After opening on strong note, both benchmark indices closed the session also in a higher note today, April 1.
The session remained largely positive throughout the day. Today’s rally was supported by gains across multiple sectors.
In today’s trade, the benchmark indices close with steady gains.
Both the headline indices, Sensex and Nifty both ended the session with gains of around 1.5%.
The Sensex closed above 73,100, surging close to 1,186 points. The Nifty settled above 22,600 with an increase of over 340 points.
The Nifty Bank index also ended 2% higher, providing support to the broader market.
“Indian equity markets opened FY27 on a strong note, driven by improving risk appetite following US President Donald Trump’s remarks hinting at a potential resolution to the West Asia conflict. Broad-based buying lifted benchmark indices, with mid- and small-cap stocks outperforming large caps, aided further by a stabilising rupee and softening crude oil prices,” said Vinod Nair, Head of Research, Geojit Investments.
“Sectoral rotation from defensives toward cyclicals was evident, with banking, chemicals, metals, and realty emerging as the key outperformers of the session. Nevertheless, elevated bond yields and intraday volatility capped gains, keeping the overall advance measured rather than emphatic. Despite the constructive tone, markets may remain sensitive to sudden reversals in the evolving geopolitical landscape going forward,” he added.
Let’s take a look at the key highlights of today’s trade
Gains spread across sectors
Market participation was not limited to a few stocks. Most sectoral indices closed in the green in today’s trade.
Auto, fast-moving consumer goods (FMCG), information technology and metal stocks recorded gains of more than 2% each.
However, the trend was not uniform across all sectors. Pharma and healthcare stocks moved in the opposite direction and ended the session lower by around 1%.
Volatility declines during the session
The India VIX, which measures market volatility, declined by around 10% during the day.
A drop in the volatility index generally indicates reduced uncertainty among market participants and a relatively stable trading environment.
Global developments
External factors also played a role in shaping market direction.
Market sentiment improved following indications of easing tension in West Asia. This reduced concerns around the ongoing geopolitical risks.
Apart from this, crude oil prices edged lower. This is typically seen as a positive for India’s macroeconomic outlook.
Key stocks drive the momentum
Among individual stocks, gains were seen in names such as IndiGo, Adani Ports, Trent and Bharat Electronics.