Investors on Dalal Street witnessed a sharp surge in wealth as benchmark indices Sensex and Nifty rallied nearly 3% in early trade, adding ₹11 lakh crore to the market capitalization.
The Sensex jumped over 2,000 points, while the Nifty neared the 24,700 mark, driven by positive global and domestic developments. The combined market value of all BSE-listed companies rose to ₹427.84 lakh crore, marking a significant increase from the previous session.
Key Drivers of the Market Rally
- Easing India-Pakistan Tensions – Investors welcomed signs of de-escalation between India and Pakistan, boosting confidence in the market.
- US-China Trade Talks – Reports of trade discussions between US and Chinese officials in Switzerland raised hopes of reduced tariffs and better trade terms.
- Foreign Institutional Investments (FII) – Continued foreign investor confidence in India’s equity market contributed to the rally.
- Strong Domestic Fundamentals – The early onset of monsoon and expectations of softening inflation further supported market sentiment.
Top Gainers Driving the Rally
Several large-cap stocks posted strong gains, leading the surge:
- Adani Ports (+4.41%)
- Axis Bank (+4.07%)
- Infosys (+4.06%)
- Bajaj Finance (+3.71%)
- Reliance Industries (+3%)
On the Nifty50, the biggest gainers included:
- Adani Enterprises (+6.73%)
- Jio Financial Services (+5.42%)
- Shriram Finance (+4.50%)
- Trent (+4.28%)
Despite the bullish trend, Sun Pharmaceuticals was the only Sensex stock trading in the red, falling 4.50%.
Expert Insights
Market analysts advise investors to remain cautious and avoid short-term panic. Vaibhav Porwal, Co-Founder of Dezerv, highlighted that Indian markets have historically rebounded from geopolitical tensions, citing past instances like the 2016 Uri strike and 2019 Balakot airstrike, where markets gained 11.3% and 8.9%, respectively.
As global and domestic factors continue to shape market movements, investors remain optimistic about sustained growth in the coming weeks.
