Why Did Sensex and Nifty Rise Over 1% Despite Geopolitical Tensions?
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Synopsis
On April 28, the Indian stock markets defied geopolitical tensions, with Sensex and Nifty rising over 1%. This unexpected rally was fueled by hopes of a new India-US trade deal and robust corporate earnings, creating a buoyant atmosphere for investors. Discover what drove this surge and the implications for the market ahead.
Key Takeaways
- Sensex rose by 1.32% amid geopolitical tensions.
- Nifty surged over 300 points, reaching above 24,300.
- Investor optimism is linked to potential India-US trade agreements.
- FIIs have been active buyers, purchasing equities worth over Rs 32,000 crore in April.
- Pharma stocks showed strong gains, contributing to market positivity.
Mumbai, April 28 (NationPress) In the face of prevailing geopolitical tensions, the Indian stock markets experienced a robust rally on Monday, with both Sensex and Nifty climbing over 1 percent during intra-day trading. The broader markets also saw considerable buying activity.
As of around 1:15 pm, the Sensex was at 80,259.03, reflecting an increase of 1,046.5 points or 1.32 percent. Meanwhile, the Nifty surged by nearly 300 points, breaching the 24,300 mark.
Investor optimism was significantly boosted by the prospect of a new India-US trade deal, strong corporate earnings, and positive global indicators, which all contributed to a steady rise across the markets.
Reports indicated that India and the US might soon finalize a bilateral trade agreement (BTA), potentially making India the first nation to bypass reciprocal tariffs with the US.
This agreement is anticipated to unlock opportunities for Indian businesses in several vital sectors, including telecommunications equipment, biotechnology, artificial intelligence, pharmaceuticals, quantum computing, and semiconductors.
Moreover, investors are hopeful that China will unveil additional stimulus measures to bolster its economy, further enhancing global market sentiment.
While US futures exhibited a slightly subdued trend, the overall market sentiment remained optimistic.
Pharmaceutical stocks emerged as top gainers on Monday, with the Nifty Pharma Index and the NSE Healthcare Index both climbing nearly 2 percent during intra-day trading.
The sector benefited from the calm surrounding further US tariff announcements and the historical trend of positive returns for pharma stocks in April. Investors are also looking forward to critical pharma earnings next month.
Earlier in the day, Indian equity benchmark indices opened higher against a backdrop of mixed global cues, with notable buying activity in the PSU bank and financial services sectors during initial trades.
Foreign institutional investors (FIIs) continued their purchasing spree for the eighth consecutive session, acquiring equities worth over Rs 32,000 crore in April alone. This sustained buying has provided a significant boost to overall market sentiment.
Point of View
It is essential to recognize that the Indian stock markets have shown resilience amidst geopolitical uncertainties. The optimism surrounding potential trade agreements and strong corporate performances reflects a robust economic environment. Our nation remains steadfast in navigating these challenges while leveraging opportunities that arise.
NationPress
01/05/2025
Frequently Asked Questions
What factors contributed to the rise in Sensex and Nifty?
The rise in Sensex and Nifty can be attributed to hopes of a new India-US trade deal, strong corporate earnings, and positive global cues, which boosted investor sentiment.
How did foreign institutional investors impact the market?
Foreign institutional investors (FIIs) have been consistently buying equities, contributing significantly to the market's positive momentum. In April, they purchased over Rs 32,000 crore worth of equities.
What sectors showed strong performance during the rally?
The pharmaceutical sector performed notably well, with both the Nifty Pharma Index and NSE Healthcare Index rising almost 2% during intra-day trading.
