India’s equity market opened the week with a bang, as Nifty and Sensex today registered one of their sharpest single-day rallies in months. The key trigger? A surprise ceasefire agreement between India and Pakistan swiftly defused weekend tensions. In just minutes after the market opened on Monday, the BSE Sensex surged over 2,200 points while the Nifty 50 rallied by 700 points to hit a fresh high of 24,700. With bullish sentiment sweeping Dalal Street, retail and foreign investors alike are now back in action.
Sensex, Nifty 50 Rally: Ceasefire Calms Nerves
Geopolitical fears had weighed heavily on markets last Friday, with both benchmarks shedding over 1%. However, Monday’s gap-up opening flipped the narrative.
Sensex opened at 80,803 and hit an intraday high of 81,830, while Nifty zoomed past 24,700 — gaining over 700 points in just a few hours.
The India-Pakistan ceasefire wasn’t the only reason for the cheer. Analysts say improved global trade sentiments, progress in India-UK and US-China deals, and stable domestic indicators all helped ignite this rally. India VIX, a volatility gauge, crashed 18%, showing that panic has been swiftly replaced by confidence.
FIIs Return with a Bang as Global Flows Shift
After months of caution, foreign institutional investors (FIIs) are now pouring funds into Indian equities. Since mid-April, FIIs have pumped in a massive ₹48,500 crore, reversing the early 2025 trend of net selling.
Market experts attribute this change to global macro trends — including a softening dollar, slowing U.S. and Chinese economies, and India’s robust GDP outlook. In fact, India is now among the top destinations for global equity inflows alongside Brazil and Taiwan.
An eye-catching stat: In just the last week, India saw net inflows of $326 million — with $257 million specifically into India-dedicated funds. Many foreign desks are also rotating away from China and increasing allocations to India, signalling sustained momentum ahead.
Earnings, Policies, and Retail Power Fuel Optimism
Corporate India is also stepping up. Out of 472 companies that have reported Q4 results so far, net profits rose 12.4% sequentially — the best in two years. Year-on-year, profits jumped 10%, and revenue growth remains steady. Though margins have tightened slightly, analysts expect FY26 earnings to grow by 12%, making current valuations quite reasonable.
Adding to this, April’s AMFI data shows SIP inflows hit a record ₹26,632 crore — reflecting strong faith from Indian retail investors. The RBI’s February pivot toward easier rates and higher capex has also boosted sentiment, giving the market a healthy macro foundation.
What’s Next? Market Strategy and Outlook
With this rally, Nifty has moved into a bullish zone. Experts advise not to chase prices blindly but instead focus on strategic buying during dips. The new support is seen around 24,300, and resistance near 24,800. A breakout above 24,800 may open doors to 25,100 in the short term.
Defensive sectors like banking and defence could outperform due to reduced geopolitical risk. Meanwhile, broader indices like midcap and smallcap also logged gains of 2.7–3.2%, indicating widespread participation.
The stage seems set for a continued upward move — provided global stability holds and FII inflows remain strong.
Final Word
This rally isn’t just about peace on the borders — it’s about confidence in India’s growth story. As FIIs return, earnings impress, and global trade stabilises, the Indian stock market is displaying remarkable resilience. For investors, the key lies in staying disciplined, watching valuations, and riding the wave with thoughtful stock picks.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
