Sensex soars over 1,300 points, Nifty reclaims 25,000 mark
What's the story
The Indian stock market witnessed a massive surge today. The Sensex and Nifty benchmarks surged sharply during intraday trade.
The rally was mainly led by the stellar performance of heavyweights such as HDFC Bank, ICICI Bank, and Reliance Industries.
The Sensex opened at 81,354.43 points against its previous close of 81,330.56, and soared to an intraday high of 82,670 after gaining over 1,300 points or 1.6%.
The Nifty index also displayed impressive growth, reclaiming the 25,000 mark.
Performance
What about other indices?
The Nifty 50 index opened the day at 24,694.45 against its previous close of 24,666.90 and hit an intraday high of 25,090.
The mid and small-cap segments also witnessed an upward trend but didn't fare as well as their larger counterparts.
The BSE Midcap index gained about 0.5% while the Smallcap index jumped nearly 1% during the session.
Market drivers
Some reasons for the market rally
Experts have listed some major factors behind this sharp rally in the Indian stock market.
First, value buying in select large-cap stocks after a recent correction has boosted market benchmarks.
Tata Motors, HCL Tech, Adani Ports and Maruti are among the top gainers in the Sensex index with their shares rising by 2-4%.
Trade agreement
Possible US-India trade deal fuels market optimism
The second factor behind the market rally is the possible US-India trade deal.
According to media reports, US President Donald Trump has claimed that India proposed a trade agreement with "no tariffs" or 'zero tariffs.'
This increasing optimism over a possible US-India trade deal has lifted market sentiment and pushed market benchmarks higher.
Earnings report
Stable Q4 earnings underpin market sentiment
The third factor driving the rally is the stable Q4 earnings of Indian companies.
According to brokerage firm Motilal Oswal Financial Services, till May 5, earnings for 27 Nifty companies reflected a mixed but overall better-than-expected performance for Q4 FY25.
This included year-on-year (YoY) growth of 9% in sales, 6% in EBITDA, 10% in PBT and 4% in PAT.