Renewed foreign interest coupled with a decline in crude oil prices and the dollar as well as falling domestic inflation are fuelling a significant uptick in Indian equities, said Dhiraj Relli, managing director and CEO of HDFC Securities.
New Delhi: Investors’ wealth soared by Rs 32 lakh crore in the five-day stock rally to Monday powered by foreign fund inflows and a broad-based gains in equities.
On Monday, the 30-share BSE Sensex jumped 855.30 points or 1.09 per cent to settle above the 79,000 mark at 79,408.50. In the past five-days, the BSE barometer zoomed 5,561.35 points or 7.53 per cent.
The market capitalisation of BSE-listed firms surged by Rs 32,03,295.8 crore to Rs 4,25,85,629.02 crore (USD 5 trillion) in five trading days.
Renewed foreign interest coupled with a decline in crude oil prices and the dollar as well as falling domestic inflation are fuelling a significant uptick in Indian equities, said Dhiraj Relli, managing director and CEO of HDFC Securities.
“Markets opened higher and extended the gains throughout the day powered by broad-based rally and positive domestic cues as strong bank earnings over the weekend boosted the overall sentiment. Quarterly earnings season is in full swing with heavyweight banks reporting results over the weekend largely above estimates with strong outlook and positive commentary,” Satish Chandra Aluri, Analyst, Lemonn Markets Desk, said.
With foreign investors fast losing their confidence in the US economy and Trump’s flip-flop tariff policy, we are seeing renewed foreign inflows into markets which are also driving the indices higher, he added.
Financials, which comprise over 37% of the Nifty 50, have jumped 9.5% in five sessions and hit lifetime highs.
“The banking sector will lead earnings growth. It is one of the few sectors where the core business (credit growth) is growing in double digits,” said G Chokkalingam, founder of Equinomics Research.
There is room for further gains, Chokkalingam said, as the market capitalization of Indian stocks is still about 50 trillion rupees ($587.57 billion) away from September highs.
A weak dollar, which slid to a three-year low on Monday, is also seen strengthening the case for foreign inflows as it reduces India’s import bills and encourages investment into emerging markets.
Financial and IT stocks, which have high foreign portfolio investor exposure, contributed to more than half to the Nifty’s gains on Monday.
Among stocks, Infosys (INFY.NS), opens new tab jumped 2.2% and was the biggest boost to the IT index as brokerages including JM Financials said its fiscal 2026 revenue guidance was realistic but encouraging.
From the Sensex firms, Tech Mahindra, IndusInd Bank, Power Grid, Bajaj Finserv, Mahindra & Mahindra, HCL Tech, Axis Bank, State Bank of India, Kotak Mahindra Bank, Infosys, Reliance Industries and Tata Steel were the biggest gainers.
Adani Ports, Hindustan Unilever, ITC, Asian Paints and Nestle were among the laggards.
The BSE midcap gauge surged 2.20 per cent and the smallcap index jumped 1.67 per cent.
All BSE sectoral indices ended higher, with oil & gas soaring 2.61 per cent, power (2.49 per cent), BSE Focused IT (2.42 per cent), IT (2.31 per cent), realty (2.27 per cent), auto (2.12 per cent) and metal (2 per cent).
As many as 2,918 stocks advanced while 1,168 declined and 161 remained unchanged on the BSE.
“Nifty rallied for the 5th consecutive day, ending with gains of 274 points. Today’s rally was driven by strong buying in heavyweight stocks and sustained foreign fund inflows. The FII flows were positive for the third consecutive day on Thursday,” Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
Meanwhile, with the latest rally, the total market cap has recovered and hit the $5 trillion milestone once again on April 21, according to latest Bloomberg data.
Currently, the United States, Japan and Hong Kong are among the countries that have stock markets with a total market capitalisation of over $5 trillion.
The sharp correction earlier this month was triggered by US President Donald Trump’s announcement of reciprocal tariffs, which had a ripple effect across global markets, including India.
On April 7, the combined market cap of BSE-listed companies had slipped to $4.5 trillion. However, with the ongoing recovery, markets have gained back around $500 billion in value.