Why did stock market rise today? BSE Sensex closes over 1,000 points up; Nifty50 above 24,300 - top 5 reasons bulls partied

Stock market today: Indian equity benchmark indices, BSE Sensex and Nifty50, rallied strongly in trade on Monday. While BSE Sensex went above 80,300, Nifty50 crossed 24,350 intraday. BSE Sensex ended the day at 80,218.37, up 1,0006 points or 1.27%. Nifty50 closed at 24,328.50, up 289 points or 1.20%.
The benchmark indices were propelled by Reliance Industries' strong earnings report and favourable signals from Asian markets, while investors remained watchful of India-Pakistan relations.
All sectoral indices, except Nifty IT, showed positive movement, with Nifty PSU Bank, Consumer Durables, Oil & Gas, and Private Bank indices each advancing more than 1%.
Vinod Nair, Head of Research, Geojit Investments Limited said, “The domestic market recouped from the losses incurred during the last two days of the previous week, which stemmed from the border tensions. While sustained buying from FIIs and better results from RIL also boosted the investor sentiment. A weakening dollar and inflationary pressure in the US may attract FIIs into the domestic market. However, investors are advised to exercise caution in the near term as the market is yet to discount the impact of retaliation for the Pahalgam terror attack.For a new investor, holding a position on cash and debt of about 40% with a bottom-up approach on equity based on the earnings outcome will be a beneficial strategy."

1) RIL's Q4 performance exceeds expectations
Reliance Industries shares increased by 4% following their quarterly results, which surpassed analyst estimates, supported by strong retail and digital segment performance. The company's positive results contributed approximately 300 points to the Sensex increase.
According to an ET report, Nomura's analysis highlighted strong performance across divisions and identified three key catalysts: expansion of new energy operations, potential Jio price increases, and a possible Jio listing or IPO that could enhance Reliance's value.
JP Morgan's assessment suggested potential share price appreciation for Reliance, citing current attractive valuations.
2) FII's Sustained Investment Pattern
The market's stability is significantly influenced by Foreign Institutional Investors (FIIs), who have invested Rs 32,465 crore in the past eight days.
"FIIs have dramatically reversed their selling strategy and turned sustained buyers. This shift is driven by the relative underperformance of US stocks, bonds, and the dollar. In a weakening US economy and depreciating dollar environment, FIIs may continue to buy, providing further support to the market," said VK Vijayakumar.
3) Dollar's Declining Trend
The declining value of the dollar has enhanced investor confidence in emerging markets, including India. The reduced dollar value tends to attract foreign investments and benefits the rupee's position.
The dollar index registered 99.60 on Monday, showing a reduction from 109.88 in early February. This reduction has increased interest in risk-based assets, particularly affecting currency-sensitive sectors such as metals.
4) Oil Market Dynamics
Crude oil prices declined below $67 per barrel on Monday, providing relief to inflation worries. Brent crude stood at $66.06, whilst U.S. West Texas Intermediate remained at $63.34. The reduced oil prices benefit India, a significant oil importing nation, by alleviating strain on its current account and inflation levels.
5) Global Markets
Indian markets advanced alongside other Asian counterparts. Initial trading activity remained subdued, with MSCI's broadest index of Asia-Pacific shares outside Japan rising 0.1%. Japan's Nikkei advanced 0.9%, and South Korea strengthened 0.2%.
EUROSTOXX 50 futures increased 0.3%, whilst FTSE futures and DAX futures both gained 0.2%.
Concurrently, U.S. President Donald Trump reported advancement in trade discussions with China and other nations, although concrete evidence remains limited.
"It is important to remember that markets have an uncanny ability to surprise by climbing many walls of worries," said Vijayakumar.