Strong Q4 results from top banks, hopes of a US-India trade pact, and expectations of interest rate cuts helped Indian equities post their fifth straight session of gains, with 12 of 13 sectoral indices ending in green.
Mumbai, April 21:
The Indian stock market continued its winning streak for the fifth consecutive session on Monday, driven by robust bank earnings, bullish technical indicators, and growing optimism over a US-India trade deal.
The Nifty 50 rose by 1.16% to close at 24,129, while the Sensex gained 1.11% to settle at 79,421. The broader markets outperformed, with Nifty Midcap 100 climbing 2.55% and Nifty Small Cap 100 adding 2.26%.
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A strong breadth was seen across sectors as 12 of 13 major indices closed in the green. Nifty PSU Bank was the top sectoral gainer, rising 2.49%, followed by realty, oil & gas, IT, and metal stocks.
📈 Top Gainers:
- Kalpataru Projects led the Nifty 500 pack with a 13.5% surge
- Just Dial, Vodafone Idea, KFIN Technologies, and Suzlon Energy gained over 4% each
🔍 Five Key Factors Behind Today’s Market Rally:
1. Strong Q4 Bank Results
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Positive earnings from top private banks, notably HDFC Bank and ICICI Bank, spurred investor confidence. Yes Bank also rallied over 7%. HDFC Bank hit a record high, becoming the biggest contributor to the Nifty’s rise. The Bank Nifty surged 1.8%, hitting a new lifetime high.
2. Resilient Indian Economy
Despite global trade tensions, India’s economic outlook remains strong. Analysts expect India to maintain over 6% growth, attracting foreign portfolio investments (FPIs), especially into financials, telecom, real estate, and consumer sectors.
3. Progress on US-India Trade Talks
US Vice President JD Vance’s arrival in New Delhi raised expectations of a bilateral trade pact by July, potentially avoiding steep US tariffs. Markets see this as a bullish signal for India’s global trade positioning.
4. Rate Cut Expectations
With CPI inflation easing to 3.3% in March, the RBI may lean toward a 75–100 basis points rate cut in FY2026. Lower interest rates are likely to boost margins and profitability across sectors.
5. Bullish Technical Indicators
The Nifty broke above its 20-day and 50-day moving averages, forming bullish patterns on both daily and weekly charts. Key resistance is seen at 24,545, while strong support lies at 23,600, according to analysts from Angel One.
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