Sensex Surges 1,509 Points, Nifty Closes Above 23,850: 5 Key Drivers Behind Market Rally

India’s stock markets logged their fourth straight day of gains on April 17, with Sensex and Nifty 50 rallying sharply on the back of positive macroeconomic data, strong FPI inflows, trade optimism, and banking sector momentum.

April 17, 2025: The Indian stock market continued its robust upward momentum on Thursday, April 17, closing with substantial gains for the fourth straight session. The BSE Sensex jumped 1,509 points, or 1.96%, to close at 78,553, while the Nifty 50 surged 414 points, or 1.77%, to settle at 23,852.

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From April 12 to April 17, the Sensex has gained over 4,706 points, and the Nifty 50 has added more than 1,453 points, translating to nearly 6.5% in just four sessions.

Here are the five key factors that propelled this sharp uptrend:

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✅ 1. Trade Deal Hopes Between India and the US

Markets were buoyed by renewed hopes of a favourable trade agreement between India and the United States. With US President Donald Trump signaling exemptions on some tariffs and temporarily halting others, sentiment around India’s export-driven sectors improved significantly.

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✅ 2. Strong Domestic Macro Indicators

• Retail inflation (CPI) eased to 3.34% in March, marking the slowest pace since August 2019.
• The RBI expects inflation to remain at 4% for FY26 and GDP growth at 6.5%.
• Stable crude oil prices and solid economic fundamentals have added to the optimism.

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✅ 3. Normal Monsoon Forecast

Both the India Meteorological Department and Skymet Weather predict a normal monsoon, boosting prospects for rural demand, controlling inflation, and improving the fiscal outlook.

Monsoon-linked optimism often drives sectors like agriculture, FMCG, and fertilizers, while also strengthening the case for RBI rate cuts.

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✅ 4. Foreign Portfolio Investors Turn Net Buyers

Foreign institutional investors (FIIs/FPIs) have returned to Indian equities with enthusiasm:

• ₹10,000 crore worth of stocks were bought in the last two trading sessions alone.
• This reversal follows a 9-day selling streak, marking renewed confidence in India amid global volatility.

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✅ 5. Banking Sector Leads the Rally

The rally was spearheaded by banking heavyweights:

• ICICI Bank, SBI, Kotak Mahindra Bank, Axis Bank, and HDFC Bank all gained between 2% to 4%.
• The Nifty Bank index rose 2.21%, closing at 54,290, just shy of its all-time high of 54,467.

Given their weightage in benchmark indices, bank stock gains significantly lift overall market performance.

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