The Indian stock market saw a significant bullish surge on Monday, as Nifty 50 turned green for the year and Sensex continued its upward momentum by registering substantial gains for the sixth consecutive trading session. The Nifty 50 index, a benchmark of the top 50 listed companies, climbed to an intraday high of 23,650 before settling at 23,673. This closing value marked an intraday gain of 323 points, pushing the index above its 31 December 2024 closing of 23,644, thus turning positive in Year-To-Date (YTD) terms.

Similarly, the BSE Sensex, comprising 30 blue-chip stocks, surged by over 1,000 points intraday, closing at 77,984—just 155 points shy of its 2024 closing of 78,139, nearing a positive YTD status. Over the last six sessions, Sensex has gained 4,156 points, an increase of 5.60%, showcasing sustained investor optimism.

Bank Nifty Joins the Rally

The Bank Nifty index, tracking major banking stocks, was a standout performer, opening at 50,982 and closing at 51,704, logging an intraday gain of 1,100+ points. Over the last six trading sessions, Bank Nifty has risen by 3,644 points or 7.59%, already green in YTD terms as it trades well above the 2024 closing of 50,860.

This stock market rally is broad-based, with small-cap and mid-cap indices outperforming. The BSE Small-cap index surged 9.60%, while the BSE Mid-cap index rose 8.30% in just six sessions. Notably, 635 BSE-listed stocks hit circuit limits today, with 381 on the upper circuit and 254 on the lower circuit. Moreover, 90 stocks hit 52-week highs, indicating broad participation in this rally.

Why Is the Market Rising?

Stock market experts cite multiple triggers for the rally in Indian equities, led by a positive economic outlook, monetary policy expectations, and strong domestic and foreign investor participation.

1. Better Q4 Results 2025 Outlook

Analysts project strong Q4 FY25 results on the back of a rebound in India's GDP. Fitch Ratings expects increased capital spending in FY26 and FY27, while GDP growth rebounded to 6.2% in Q4 2024 from 5.4% in the previous quarter. This improvement supports corporate earnings growth and investor confidence.

2. RBI Rate Cut Buzz

Following the US Fed meeting, markets anticipate a rate cut by the RBI in April 2025, enhancing market liquidity and fueling stock buying. Morgan Stanley expects 75 basis points of rate cuts in FY26, revising up from 50 bps, supported by easing inflation.

3. Attractive Valuations Lure Investors

DIIs and FIIs have intensified buying, capitalizing on attractive stock valuations. DIIs bought ₹30,788 crore worth of shares in March, while FIIs reversed course to buy ₹5,819 crore in the same period. This renewed FII interest adds momentum.

4. Strong Economic Projections

Morgan Stanley projects India’s economy to grow to $4.7 trillion by 2026, becoming the third-largest economy globally by 2028. This long-term growth outlook supports continued investment inflows and market expansion.

5. Stable Indian Rupee Encourages FIIs

A stable INR has encouraged foreign portfolio investments, boosting market sentiment. RBI’s rate management and inflation control have provided macroeconomic stability, further supporting this market uptrend.

Stocks in Focus Today

Several stocks surged following key developments:

• Allied Blenders & Distillers rose after regulatory approval to increase spirit production capacity to 615 lakh BL in Telangana.

• Hindustan Aeronautics faced a ₹2,471 crore tax demand under Maharashtra’s Amnesty Scheme.

• Larsen & Toubro (L&T) gained on approval of ₹12,000 crore borrowing and appointment of Subramanian Sarma as Deputy MD. Also, reports indicate L&T may win a $4.5 billion Qatar Energy project.

• NCC rose on securing a ₹1,480 crore order for redevelopment of Darbhanga Medical College in Bihar.

• Power Mech Projects secured a ₹579 crore order from BHEL for work on Koderma Phase-II power project.

Other stocks in news include:

• EPACK Durables rose as it received ₹30 crore incentives under PLI Scheme.

• DLF gained after announcing ₹20,000 crore investment to expand commercial property portfolio.

• Mahindra & Mahindra reportedly in talks to acquire 44% stake in SML Isuzu, valuing it at ₹1,400-1,500 per share.

• J Kumar Infraprojects, Railtel Corp, and Diamond Power Infrastructure surged on winning large infrastructure orders.

Macro Indicators Supportive

India’s HSBC Flash Composite PMI stood at 58.6 in March, indicating strong economic activity despite slight moderation from February. Manufacturing faced margin pressures, but export orders remained resilient.

Additionally, Kotak Institutional Equities cautioned on FMCG growth due to weak urban consumption and commodity inflation, favoring Godrej Consumer for its soap segment pricing power.

The Indian stock market’s rally appears broad-based and fundamentally supported, driven by strong economic indicators, robust investor participation, and favorable monetary policy expectations. While profit-booking may occur, the upward momentum is expected to sustain, especially with the anticipated RBI rate cut and positive Q4 FY25 results.

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