Mumbai, April 17: Indian equity markets continued their upward momentum for the fourth straight session on Thursday, with the BSE Sensex soaring by 1,509 points and the NSE Nifty gaining 414 points. The rally was driven by renewed investor optimism fueled by hopes of successful trade talks between the United States and Japan, along with strong foreign institutional investor (FII) inflows.
As per agency report, the 30-share BSE Sensex surged 1,508.91 points or 1.96 percent to close at 78,553.20, reclaiming the 78,000-mark. During the session, it had jumped as much as 1,572.48 points. The broader market sentiment remained bullish, with 2,427 stocks advancing, 1,522 declining, and 157 remaining unchanged on the BSE.
The NSE Nifty also ended the session on a strong note, climbing 414.45 points or 1.77 percent to settle at 23,851.65. Over the past four sessions, the Sensex has rallied by 4,706.05 points or 6.37 percent, while the Nifty has gained 1,452.5 points or 6.48 percent.
According to analysts at Lemon Markets Desk, the benchmark indices ended the week on a high note with gains in mid- and small-cap segments as well. Although the markets opened in the red due to weak global cues following a sharp fall in US indices on Wednesday, buying resumed swiftly, helping domestic indices recover and close higher. Investors’ focus has now shifted to upcoming quarterly earnings reports from Indian companies.
Key gainers in the Sensex pack included Eternal Ltd (formerly Zomato), ICICI Bank, Bharti Airtel, Sun Pharma, State Bank of India, Bajaj Finserv, Kotak Mahindra Bank, and Reliance Industries. On the other hand, Tech Mahindra and Maruti were among the laggards.
The BSE Midcap index rose by 0.56 percent, while the Smallcap index added 0.52 percent. FIIs were net buyers, purchasing shares worth Rs 3,936.42 crore on Wednesday, after having invested Rs 6,065.78 crore the previous day.
Asian markets also ended higher, with South Korea’s Kospi, Japan’s Nikkei, China’s Shanghai Composite, and Hong Kong’s Hang Seng indices posting gains. However, European markets showed a downward trend in afternoon trade, following weakness in US markets on Wednesday.
Trade negotiations between the US and Japan are currently underway, aimed at resolving tariff disputes and securing a bilateral trade agreement. Market participants are optimistic about a positive outcome.
Vinod Nair, Head of Research at Geojit Financial Services, said that the financial sector led the rally among large-cap stocks. Expectations of improved margins due to adjustments in interest rates on savings deposits contributed to the positive sentiment. Additionally, strong FII buying supported the upward trend. However, there remains some uncertainty about the sustainability of the current rally.
He added that optimism over the US-Japan trade talks and easing tensions between the US and China have further boosted domestic market sentiment. A decline in inflation to more manageable levels has also played a role in supporting the rally.
Meanwhile, global crude oil benchmark Brent rose by 0.94 percent to USD 66.47 per barrel.
On Wednesday, the Sensex had climbed 309.40 points and the Nifty had advanced by 108.65 points. Indian markets will remain closed on Friday in observance of Good Friday.
