The Indian stock market kicked off the week with a roar, as Sensex surged over 900 points and Nifty crossed 23,600 — fueled by a resurgence in foreign investments and a strong rally in banking and IT sectors.
Foreign Capital Floods Back, Boosting Market Sentiment
After months of cautious retreat, foreign portfolio investors (FPIs) came back with a bang. On Friday alone, FPIs pumped in Rs 7,470 crore — the highest single-day inflow in four months. This sudden cash injection reversed the long stretch of selling that started in late September, when fears over slowing earnings growth and expensive valuations triggered a $29 billion capital flight.
Market experts see this as a turning point. “The improving macros of the Indian economy, coupled with fairer valuations, have shifted FPIs from sellers to buyers,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added that this influx has sparked aggressive short-covering, driving prices even higher.
Banking and IT Stocks Lead the Charge
Leading the rally were heavyweights from the banking and IT sectors. Power Grid, L&T, Kotak Mahindra Bank, NTPC, and Tech Mahindra emerged as top gainers, clocking gains of up to 3%.
Sectoral indices joined the party:
- Nifty Bank: Up 0.5%
- Financial Services: Rose 0.7%
- Auto: Gained 1%
- IT: Added 0.6%
In the broader market, the Nifty Midcap 100 climbed 1.1%, while the Nifty Smallcap 100 surged 1.6% — signaling strong participation from mid and small-cap players.
Stock-Specific Movers: NCC, GMR Airports Shine
Amid the bullish wave, individual stocks grabbed the spotlight too.
- NCC: Jumped 5% after landing a Rs 1,480 crore contract for redeveloping Darbhanga Medical College & Hospital.
- GMR Airports: Rose nearly 2% after the Competition Commission of India (CCI) dismissed anti-competition allegations tied to Delhi Airport contracts.
Meanwhile, M&M, UltraTech Cement, Titan, and Infosys bucked the trend, trading in the red.
Global Cues and the Road Ahead
Global markets delivered mixed signals. While U.S. stock futures advanced — S&P 500 futures climbed 0.6% and Nasdaq 100 futures jumped 0.8% — the dollar wavered. Asian markets were a mixed bag, with Japan’s Nikkei and Hong Kong’s Hang Seng inching up around 0.2%.
Ten-year U.S. Treasury yields, which have dipped 40 basis points since February highs, held steady at 4.27%. This shift has drawn global investors toward emerging markets like India.
Crude oil prices remained subdued as investors awaited updates on ceasefire talks in the Russia-Ukraine conflict. Brent crude stood at $72.08 per barrel, while U.S. West Texas Intermediate hovered around $68.23.
The rupee mirrored the market’s upbeat mood, strengthening by 12 paise to 85.86 against the U.S. dollar.
Tariff Uncertainty Looms
Despite the market’s bullish undertone, analysts caution against getting carried away. April 2nd looms large — the day reciprocal tariffs are expected to kick in. “The uncertainty surrounding those tariffs is massive. Investors might want to hold back on aggressive bets until more clarity emerges,” Vijayakumar warned.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, added, “Nifty’s sitting above key moving averages. If tariff fears ease, we could see a push towards the 200-DMA at 24,069.”
For now, though, the bulls are firmly in charge — and D-Street’s riding high on that momentum.
