Sensex jumps 1,000 points, Nifty 50 reclaims 24,300; what drove the Indian stock market higher today? EXPLAINED

Indian stock market witnessed healthy gains on Monday, April 28, with benchmarks—the Sensex and the Nifty 50—rising over 1 per cent each amid largely positive global cues. The Sensex jumped 1,109 points, or 1.4 per cent, to the level of 80,322 during the session, while the Nifty 50 rose 316 points, or 1.3 per cent, to reclaim the level of 24,355.

Finally, the Sensex closed 1,006 points, or 1.27 per cent, higher at 80,218.37, while the Nifty 50 settled at 24,328.50, up 289 points, or 1.20 per cent.

The BSE Midcap and Smallcap indices closed with gains of 1.34 per cent and 0.39 per cent, respectively.

The overall market capitalisation of the firms listed on the BSE rose to nearly ₹426 lakh crore from about ₹422 lakh crore in the previous session, making investors richer by about ₹4 lakh crore in a day.

What drove the Indian stock market higher today?

Experts highlight the following five key reasons behind the rise in the Indian stock market today:

1. India's restraint after Pahalgam terror attack

Even though there is much uncertainty about how the situation between India and Pakistan will unfold in the coming days, experts point out that the market is taking note of the fact that India has so far dealt with the situation diplomatically and strategically, avoiding a hyper-aggressive, retaliatory, war-like response.

The global community has almost unanimously condemned the Pahalgam terror attack and vowed support to fight against terrorism.

The US State Department announced on Sunday that Washington was in touch with both India and Pakistan, urging them to work toward a “responsible solution” as tensions escalated between the two nations following a recent Islamist militant attack in Kashmir, Reuters reported.

"The heightened uncertainty relating to Indo-Pak tensions will weigh on the markets. It is very difficult to judge how much the market has discounted. Going by the market's resilience, it can be said that the market has not discounted a scenario of the tensions culminating in a war between the two countries," said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

2. Easing trade war jitters

The US and China are reportedly engaged in active negotiations to reach a favourable trade deal.

According to media reports, US President Donald Trump has said the US administration was talking to China for a favourable trade deal.

Trump, however, said he would not consider reducing tariffs on China without a major concession.

"The peak of tariff-related anxiety appears to be behind us, and things are gradually improving," said Pankaj Pandey, the head of research at ICICI Securities.

3. Buying by FPIS

Foreign portfolio investors (FPIS) have been buying Indian equities since April 15, boosting market sentiment. They have been buying Indian stocks amid growing concerns over the US economic slowdown, which has weighed on the US dollar, stocks, and bonds.

"The major factor contributing to the resilience of the market is the sustained buying by FIIS (foreign institutional investors), which has amounted to ₹32,465 crores in the last eight days. FIIS have become a sustained buyer in a dramatic reversal of its sustained selling strategy. This, in turn, is due to the relative underperformance of US stocks, US bonds and the dollar. In an environment of a weakening US economy and a depreciating dollar, FIIS may continue to buy, providing support to the market," said Vijayakumar.

4. Solid show of Reliance, banking heavyweights

Gains in shares of heavyweights such as Reliance Industries and banking players such as ICICI Bank, HDFC Bank and Axis Bank also helped the market benchmarks trade higher.

Reliance share price rose more than 5 per cent after analysts retained their optimistic outlook on the company and raised their target price on the stock following the March quarter numbers that beat estimates.

Reliance reported a 6 per cent year-on-year (YoY) rise in its consolidated profit for the March quarter of the last financial year (Q4FY25).

Reliance, ICICI Bank, Axis Bank, SBI and HDFC Bank were the top five contributors to the gains in the Sensex index today. 

Meanwhile, the banking sector has been buzzing due to better-than-expected Q4 earnings.

"Fourth-quarter (Q4) earnings have largely met expectations. Encouragingly, key sectors such as banking are showing strong performance. The IT sector's results have been broadly in line with forecasts, while the cement sector has delivered a strong performance," said Pandey.

5. Positive undertone of the market triggers buy on dips

After falling for the last two consecutive sessions, the domestic market is witnessing buying on dips as the medium to long-term outlook of the domestic market remains positive due to a healthy macroeconomic picture amid the prospects of a normal monsoon.

"The Indian growth story is intact, with many avenues for investing across sectors where we see longer-term growth potential in areas like healthcare, the digital ecosystem, electronics manufacturing, capital goods and defence, etc. India is also largely domestically driven versus some other economies, which are heavily dependent on external trade," said Varun Sharma, Fund Manager, Motilal Oswal Mutual Fund.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.