Positive global cues, diplomatic handling of tensions, and strong FII inflows helped Indian equities rebound sharply; Reliance and banking stocks led the rally.
Mumbai, April 28, 2025 —
The Indian stock market rebounded sharply on Monday, April 28, with the Sensex jumping 1,006 points (1.27%) to close at 80,218.37 and the Nifty 50 rallying 289 points (1.20%) to finish at 24,328.50.
During intraday trade, the Sensex had surged over 1,100 points, briefly touching 80,322, while the Nifty 50 crossed 24,350. The BSE Midcap and Smallcap indices also closed higher by 1.34% and 0.39%, respectively.
The total market capitalisation of BSE-listed firms rose by nearly ₹4 lakh crore in a day to reach ₹426 lakh crore.
📈 What Powered Today’s Stock Market Rally?
Here are the five key factors that drove the market higher:
1. India’s Diplomatic Response to Pahalgam Attack
Despite rising tensions after the Pahalgam terror attack, India’s measured diplomatic handling — avoiding an aggressive military response — boosted investor confidence.
The global community’s strong condemnation of the attack and calls for restraint, including from the US, reassured the markets that escalation into war was unlikely.
Also Read: Salman Khan Halts UK Tour After Pahalgam Terror Attack
2. Easing US-China Trade War Fears
US President Donald Trump hinted at positive negotiations with China regarding tariffs, lowering global market anxiety.
Analysts say trade tensions appear to have peaked, encouraging a global risk-on sentiment that also supported Indian equities.
3. Strong Foreign Portfolio Investor (FPI) Buying
Foreign investors poured ₹32,465 crore into Indian equities over the last eight trading sessions.
A weakening US economy and depreciating dollar pushed FIIs back toward emerging markets like India, where growth prospects remain robust.
4. Reliance, Banks Lead the Charge
Shares of Reliance Industries rose over 5% following strong Q4 earnings, while heavyweight banking stocks such as ICICI Bank, HDFC Bank, Axis Bank, and SBI also posted gains.
Together, these five stocks accounted for a major portion of Sensex’s jump today.
5. Positive Market Undertone Encourages ‘Buy on Dips’
Despite previous sessions’ declines, the broader medium- to long-term outlook for Indian markets remains bullish.
Sectors like healthcare, digital tech, electronics manufacturing, capital goods, and defence are seen as strong future growth drivers, reinforcing investor optimism.
In summary, India’s strategic restraint, global optimism, strong corporate earnings, and consistent FII inflows have created a solid base for today’s sharp rally. Experts believe the Indian growth story remains firmly intact, and markets could see further momentum if geopolitical tensions remain under control.
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