Sensex Jumps 1,400 Points, Investors Gain ₹6 Lakh Crore: Key Factors Behind the Market Surge

Positive global cues, RBI rate cut hopes, and technical support levels drive the stock market to new heights.

February 4, 2025: On February 4, the Indian stock market witnessed a remarkable rally as the Sensex surged over 1,400 points, and the Nifty 50 crossed the 23,750 mark during intraday trading. The BSE Midcap and Smallcap indices also registered gains of 1% each, adding to the day’s broad-based market momentum.

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The Sensex opened at 77,687.60 and closed at 78,583.81, recording a rise of 1,397 points (1.81%). The Nifty 50, meanwhile, gained 378 points (1.62%) to end at 23,739.25. The market capitalization of BSE-listed firms increased by ₹5.5 lakh crore, taking the total to ₹425 lakh crore.

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Key Factors Driving the Rally:

Experts have identified the following five reasons for the market’s upward trajectory:

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1. Global Cues Boost Investor Sentiment
   Major Asian markets, including Japan’s Nikkei, Korea’s Kospi, and Hong Kong’s Hang Seng, saw gains of over 1%, thanks to changes in US trade policies that lifted global sentiment.
2. Trump Administration Pauses Tariffs on Mexico and Canada
   US President Donald Trump’s decision to temporarily halt tariffs on Mexico and Canada has provided much-needed relief to markets, encouraging a positive outlook.
3. RBI Monetary Policy Expectations
   The Reserve Bank of India’s Monetary Policy Committee (MPC) is expected to announce a 25 basis points rate cut this week. Market participants are optimistic about measures to inject liquidity and ease monetary conditions further.
4. Attractive Valuations in Large-Cap Stocks
   The Nifty 50’s 11% decline from its peak has created valuation comfort, making select large-cap stocks attractive to investors. Analysts at Motilal Oswal Financial Services noted that the index’s 12-month forward PE ratio is now trading below its historical average, offering opportunities for value investors.
5. Technical Indicators Signal Support Levels
   The Nifty 50 has key support at the 23,200 level, which analysts believe will hold the market momentum. Resistance is pegged at 23,800, indicating a potential breakout.

Broader Market Highlights:

• The BSE Midcap index rose by 1.35%, while the Smallcap index gained 1.20%.
• The overall market sentiment remains bullish, supported by a mix of domestic and global factors.
• Analysts caution that while current indicators are favorable, short-term volatility may persist.

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Sensex surge, Nifty 50 gains, stock market rally, global market impact, RBI rate cut expectations, market capitalization growth, Indian economy, stock market analysis.