Sensex Jumps 6,400 Points in 7 Days; Factors Behind Indian Stock Market Surge?

The Indian stock market has witnessed a remarkable rally, with the BSE Sensex soaring 6,407 points, or 8.7%, and the Nifty 50 climbing 1,960 points, or 8.8%, over seven consecutive sessions ending April 23, 2025. This surge has added approximately ₹35 lakh crore to investor wealth, driven by robust buying across sectors, particularly in banking and IT. The Sensex opened at 80,142 on Wednesday, reaching an intra-day high of 80,254.55, while the Nifty 50 hit 24,359. Below are the five key factors fueling this bullish momentum:

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Easing Tariff Concerns: The 90-day pause on US President Donald Trump’s reciprocal tariffs and ongoing trade negotiations have alleviated global trade war fears. Treasury Secretary Scott Bessent’s remarks about de-escalating tensions with China and Trump’s assurance against removing US Federal Reserve Chair Jerome Powell have calmed global markets, boosting investor confidence in India.

Robust Indian Economic Outlook: Experts highlight India’s resilience, projecting a 6% growth rate for FY26 despite global uncertainties. India’s limited export reliance on the US shields it from tariff impacts, while falling crude oil prices and commodity prices due to trade tensions reduce input costs and inflation, benefiting Indian companies and the economy.

Strong Corporate Earnings: Stellar Q4 FY25 results from banking heavyweights like HDFC Bank and ICICI Bank, which hit record highs, have propelled the Nifty Bank index to an all-time peak of 55,386.45. IT stocks, led by Tech Mahindra’s 6.14% surge, contributed significantly, with the Nifty IT index gaining 3.25% in a single session.

Foreign Investor Inflows: In the last three sessions, foreign portfolio investors (FPIs) have turned net buyers, purchasing equities worth over ₹14,760 crore. A weakening US dollar and India’s strong growth prospects have prompted global funds to increase exposure to Indian markets, reversing earlier selling trends.

Positive US-India Trade Signals: The visit of US Vice President JD Vance to India, coupled with talks of a potential trade agreement, has fueled optimism. India’s strategic positioning in global trade, expectations of economic reforms, and a normal monsoon forecast further support the market’s upward trajectory.

This rally reflects renewed investor confidence, underpinned by domestic resilience and favorable global cues, positioning India as a standout performer in an uncertain economic landscape.

Conclusion

The Indian stock market’s 6,400-point Sensex surge in seven days reflects robust investor confidence driven by eased tariff fears, strong economic growth, stellar corporate earnings, renewed foreign inflows, and positive US-India trade signals. With ₹35 lakh crore added to investor wealth, India’s resilience and favorable global cues position it as a standout in an uncertain economic landscape, promising continued bullish momentum.