Sensex Soars 1,750 Points, Nifty Breaches 23,300: 5 Key Reasons Behind Stock Market's Massive Rally
April 1, 2025: Indian stock markets witnessed a bullish surge on Tuesday, with the BSE Sensex jumping 1,750 points intraday and the Nifty 50 breaching the 23,300 mark for the first time ever. Experts attributed the rally to a combination of global and domestic tailwinds. Here’s a breakdown of the top five reasons behind this market euphoria:
Also Read: Unbelievable!! $34K Birkin Bag for Just $1,400? Chinese Suppliers Disrupt Luxury Market
In a rare market move, both the US bond and stock markets fell simultaneously, shaking investor confidence in American assets. This anomaly, triggered by Trump’s aggressive tariff policy, prompted global funds to rotate out of US bonds into emerging markets like India.
“This crash caused major bondholders—especially Asian economies—to dump US bonds, leading to a parallel fall in US equities,” explained Sandeep Pandey of Basav Capital.
Markets are abuzz with hopes that the 90-day pause on US tariffs signals upcoming backchannel trade talks, especially after the US markets showed distress. This positive sentiment is spilling over into emerging markets, lifting equities.
The US Dollar Index has dropped below 100, hitting a two-year low. A weaker dollar makes emerging market assets more attractive, prompting Foreign Institutional Investors (FIIs) to redirect capital flows into Indian stocks.
While President Trump continues pushing for aggressive rate cuts, US Fed Chair Jerome Powell remains firm on fighting inflation first. With inflation fears escalating post-tariffs, the Fed is unlikely to budge—leaving US markets in limbo and making India a more stable bet.
India’s central bank recently retained its inflation forecast at 4% for FY26, with a balanced outlook. This contrasts starkly with the inflation crisis brewing in the US and reassures investors about India’s macroeconomic stability.
| Index | Closing Level | Intraday Gain |
|---|---|---|
| Sensex | 76,792 | +1,634 points |
| Nifty 50 | 23,348 | +519 points |
| Bank Nifty | 52,379 | +1,377 points |
| BSE Smallcap | — | +3.2% |
| BSE Midcap | — | +3.0% |
Analysts suggest Nifty may head towards 23,869 while Sensex could test 78,740 in the near term if momentum continues. However, investors are advised to stay cautious of renewed sectoral tariffs, especially in pharma and tech.
Sensex rally, Nifty hits record high, stock market today, Indian market news, Donald Trump tariffs, RBI inflation forecast, US bond crash, US-China trade war, Fed rate hike, FIIs in India, Indian economy 2025
In a high-profile appearance for the finale week of Kaun Banega Crorepati (KBC) Season 17,…
Acclaimed Sufi singer Kailash Kher was forced to stop his live performance midway at the…
The 2025 reimagining of Anaconda is a film that recognizes the absurdity of its own…
Bollywood’s favorite couple, Sidharth Malhotra and Kiara Advani, shared a heartwarming glimpse of their 2025…
The Central government on Friday expressed strong opposition to a Public Interest Litigation (PIL) filed…
The year 2025 has been a landmark era for Indian cinema, defined by performances that…
