Stock Market Rise: Sensex, Nifty Surge – Find Out Which Sectors Are Leading The Rally

India’s benchmark indices, Sensex and Nifty, opened marginally higher on Monday, tracking positive global cues as investors cheered softer-than-expected inflation data from the U.S. and India. The Nifty 50 index remained above the 22,480 mark, while the Sensex saw gains of 310.21 points or 0.42%.

On Thursday, Indian benchmark indices closed in the red, extending the ongoing weakness seen throughout the week. The BSE Sensex dropped 200.85 points (0.27 per cent) to close at 73,828.91, while the NSE Nifty50 declined by 73.30 points (0.33 per cent) to settle at 22,397.20.

According to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, Nifty50 has been consolidating within the 22,300–23,700 range over the past week. “It is encountering resistance near the bearish gap of 22,668–22,720. As long as the index holds above 22,300, a pullback towards 22,600–22,700 remains possible. However, if Nifty breaches 22,300, the weakness could extend towards the 22,000 level,” Yedve stated.

Global Weakness and Valuation Adjustments

Beyond domestic factors, global sentiment remains feeble, impacting investor confidence in Indian equities. Additionally, valuations in the Indian market continue to moderate, which could influence short-term trading strategies.

As markets reopen after the holiday break, investors will be closely watching key resistance and support levels to gauge the direction of the next market move.

Nifty Pharma surged 1.53%, while Nifty Auto jumped 1.30%, driving market momentum. Financial stocks also performed well, with Nifty Financial Services 25/50 rising 1.04% and Nifty Bank climbing 0.57%.

Other notable sectoral gains included:

Why Is the Market Rising?

According to Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, domestic markets are being driven by strong economic data and positive global cues. “Asian cues are positive. That’s creating some positive sentiment in Asian markets at this point of time,” Bathini said.

He further explained that the Indian markets have gained momentum in the short to medium term, with a key technical level to watch: “As long as Nifty is above 22,500, it can try to attempt 23,000 in the medium to short term. It’s a kind of inflexion point,” he added.

Economic Factors Fueling Market Optimism

Domestic economic indicators have contributed to the market’s bullish sentiment.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that foreign investor activity and strong economic data are stabilizing market trends. “The near-term market trend is likely to be stable with a positive bias,” he noted.

He pointed out that Foreign Institutional Investor (FII) outflows are declining, and India’s markets have outperformed US markets in the past week.”This positive trend has fundamental support from the bounce back in FY25 Q3 GDP growth to 6.2%, the spurt in January IIP to 5%, and the decline in February CPI inflation to 3.61%,” Vijayakumar added.

Risks and Challenges Ahead

Despite the ongoing rally, market analysts have warned about potential global risks that could impact stability.

Dr. Vijayakumar highlighted concerns about global trade tensions and reciprocal tariffs, especially with the April 2 tariff deadline approaching.”The trade war fears are looming large on global trade and global growth,” he said.

India, often referred to as a ‘tariff king’ and ‘tariff abuser’ by former US President Donald Trump, could see export-driven sectors facing pressure if new tariff policies are imposed. “This will keep the market jittery, particularly the export-oriented sectors, which will be anxious about the tariff announcements,” he explained.

On a positive note, domestic consumption-driven sectors are expected to remain stable, as they are less affected by international trade policies.