Sensex surged 1,509 points, Nifty50 gained 414 points : 5 key reasons behind today's market rally

Indian benchmark indices continued rally for the fourth consecutive session on Thursday, with the BSE Sensex surging over 1,500 points and the Nifty50 closing above the 23,850 mark. The rally was primarily fuelled by strong buying in the financial sector, despite ongoing concerns regarding US tariff policies and the global economic slowdown.
The 30-share BSE Sensex soared 1,509 points, or 1.96%, to close at 78,553. Meanwhile, the broader NSE Nifty gained 414 points, or 1.77%, ending the day at 23,851.
The total market capitalization of BSE-listed companies jumped by a substantial Rs 4.33 lakh crore, reaching Rs 419.33 lakh crore, according to an ET report. Here are key drivers behind today's market rally--
Banking stocks
The Bank Nifty index spearheaded the rally, climbing nearly 2%, driven by gains in major financial stocks such as HDFC Bank and ICICI Bank. This surge came ahead of their Q4 earnings reports, scheduled for April 19. Together, top banks like HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank contributed around 600 points to the Sensex’s 1,200-point jump.
FII inflows
Foreign Institutional Investors (FIIs) continued their buying spree, making net purchases of Rs 3,936 crore in Indian equities on Wednesday. Over the past two days, FII inflows have crossed Rs 10,000 crore, indicating robust confidence in Indian stocks.
“FIIs have turned buyers in India, as the outlook for the US and China appears weaker amidst the ongoing crisis. They are likely to continue focusing on high-quality large caps, particularly in domestic consumption sectors,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Positive sentiment from US-Japan trade talksAsian markets saw a rise, with traders closely monitoring trade discussions between the US and Japan. Despite uncertainties regarding US tariffs, Japan’s Nikkei index gained 0.7%, and the yen weakened amid trade negotiations.
“The US considers India as one of four key allies, alongside the UK, Japan, and South Korea, with whom it plans to strike trade deals first. This could work in India’s favour, particularly in the context of the ongoing US-China trade war,” added Dr. Vijayakumar.
Weakening dollar
The US dollar continued its downward trajectory, dropping to a level of 99.56 from 109.88 in February. A weaker dollar typically enhances the appeal of emerging markets like India, attracting foreign investments and supporting the rupee. This development lifted investor sentiment, particularly in sectors like metals, which are sensitive to currency fluctuations.
US tariff exemptions
Investor sentiment also benefited from the temporary relief provided by US President Donald Trump’s decision to postpone additional tariffs on 75 countries, including India, until July 9. This move, announced earlier in the week, gave global markets a much-needed boost and continues to support the Indian market.