Stock market today : BSE Sensex and Nifty50 , the Indian equity benchmark indices, continued their upward trend on Monday. While the BSE Sensex crossed the 79,600 mark, Nifty50 was above 24,150. At 12:45 PM, BSE Sensex was trading at 79,585.87, up 1,033 points or 1.31%. Nifty50 was at 24,178.65, up 327 points or 1.37%.
The top BSE Sensex gainers at this hour were Tech Mahindra, IndusInd Bank, Bajaj Finserv, HCL Tech and Axis Bank. The top losers were Adani Ports SEZ, ITC, HUL, Bharti Airtel and Sun Pharma.
The key stock market indices climbed to their highest points since January 6, continuing their upward trend for the fifth straight session. The surge was driven by a declining U.S. dollar and impressive earnings reports from major banks ICICI Bank and HDFC Bank, both of which hit record highs.
Why is the stock market rising today?
1) Banking stocks dominate gains
The banking sector led Monday's upward movement, with the Nifty Bank index exceeding 55,000 for the first time, bolstered by strong quarterly performance from private sector leaders. HDFC Bank shares increased nearly 2% to reach Rs 1,950.70, a new 52-week peak, while ICICI Bank shares rose approximately 1% to Rs 1,436.00, its highest ever.
The impressive financial results strengthened market confidence, with financial analysts maintaining their optimistic stance on the banking sector. Nomura specifically noted the reduced earnings risk and favourable valuations in the sector, particularly as monetary policies become more accommodative. The Reserve Bank of India has implemented 50 basis points of rate reductions in 2025, with expectations of an additional 100 bps decrease before year-end.
The banking system's liquidity has seen improvement through RBI's initiatives, including open market operations, variable rate repos, and forex swaps, resulting in surplus conditions. Furthermore, the decreased risk weightage for NBFCs and microfinance institutions has enhanced credit distribution, providing additional support to banking sector growth.
2) FII inflows sustain market momentum
Foreign institutional investors continued their positive stance, with net equity purchases of Rs 4,668 crore on April 17. Meanwhile, domestic institutional investors opted to take profits, with net sales of Rs 2,006 crore.
Foreign portfolio investors have maintained a positive outlook on Indian equities across recent sessions, buoyed by a declining U.S. dollar and confidence in India's economic trajectory.
"Even though the global economic scenario is mired in uncertainty, India appears relatively resilient. India is the only large economy which can grow at 6% even in a slowing global economy. This, along with the declining dollar, has the potential to attract more FPI inflows into India in the short run," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
FIIs are expected to concentrate on sectors linked to domestic consumption, including financial services, telecommunications, aviation, hospitality, select automotive companies, property, cement and healthcare. "Growth stocks in the digital space also have the potential to move up," Vijayakumar noted, whilst indicating that IT sector performance could remain subdued due to concerns about U.S. economic deceleration.
3) Dollar weakness supports market sentiment
The U.S. dollar declined to 98.246 against major currencies on Monday, reaching a three-year low and providing additional support to Indian equities. A declining dollar traditionally benefits India's import costs and encourages foreign investment in emerging markets.
"A weaker dollar will definitely lead investors to look outside the U.S., and this will be a big opportunity for countries like India," said Madan Sabnavis, Chief Economist at Bank of Baroda. "But we need to see if the U.S. does anything to encourage investment in the country following these protective tariffs. The net effect may be hard to conjecture right now. But to begin with, there would be a flow of FPI funds to emerging markets, including India," he added according to an ET report.
The domestic impact of dollar depreciation will also be influenced by other currency movements. A weaker dollar typically strengthens other currencies under similar conditions, potentially affecting India's export competitiveness. Therefore, monitoring peer currency performance remains crucial, according to Sabnavis.
4) Trade Relief Extends Market Support
Market confidence remained strong following the U.S. President Donald Trump's decision for delaying additional tariffs on 75 nations, including India, until July 9. This temporary suspension, declared in the previous week, provided respite to markets amidst rising international trade conflicts.
The initial news triggered positive movements across global shares, whilst the ongoing exemption continues to bolster Indian markets by reducing worries about possible export disruptions and trade-related fluctuations.
5) Oil Price Decline Brings Advantage
Oil values declined over 1.5% on Monday as market participants returned attention to worries that U.S. tariffs on trade partners could create economic challenges, potentially limiting fuel consumption growth.
Brent crude futures fell $1.10, or 1.6%, to $66.86 a barrel at 0255 GMT, after a 3.2% increase on Thursday.
For India, a major oil importing nation, reduced crude prices provide considerable advantage, lessening strain on the current account deficit and helping control inflation pressures.
The top BSE Sensex gainers at this hour were Tech Mahindra, IndusInd Bank, Bajaj Finserv, HCL Tech and Axis Bank. The top losers were Adani Ports SEZ, ITC, HUL, Bharti Airtel and Sun Pharma.
The key stock market indices climbed to their highest points since January 6, continuing their upward trend for the fifth straight session. The surge was driven by a declining U.S. dollar and impressive earnings reports from major banks ICICI Bank and HDFC Bank, both of which hit record highs.
Why is the stock market rising today?
1) Banking stocks dominate gains
The banking sector led Monday's upward movement, with the Nifty Bank index exceeding 55,000 for the first time, bolstered by strong quarterly performance from private sector leaders. HDFC Bank shares increased nearly 2% to reach Rs 1,950.70, a new 52-week peak, while ICICI Bank shares rose approximately 1% to Rs 1,436.00, its highest ever.
The impressive financial results strengthened market confidence, with financial analysts maintaining their optimistic stance on the banking sector. Nomura specifically noted the reduced earnings risk and favourable valuations in the sector, particularly as monetary policies become more accommodative. The Reserve Bank of India has implemented 50 basis points of rate reductions in 2025, with expectations of an additional 100 bps decrease before year-end.
The banking system's liquidity has seen improvement through RBI's initiatives, including open market operations, variable rate repos, and forex swaps, resulting in surplus conditions. Furthermore, the decreased risk weightage for NBFCs and microfinance institutions has enhanced credit distribution, providing additional support to banking sector growth.
2) FII inflows sustain market momentum
Foreign institutional investors continued their positive stance, with net equity purchases of Rs 4,668 crore on April 17. Meanwhile, domestic institutional investors opted to take profits, with net sales of Rs 2,006 crore.
Foreign portfolio investors have maintained a positive outlook on Indian equities across recent sessions, buoyed by a declining U.S. dollar and confidence in India's economic trajectory.
"Even though the global economic scenario is mired in uncertainty, India appears relatively resilient. India is the only large economy which can grow at 6% even in a slowing global economy. This, along with the declining dollar, has the potential to attract more FPI inflows into India in the short run," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
FIIs are expected to concentrate on sectors linked to domestic consumption, including financial services, telecommunications, aviation, hospitality, select automotive companies, property, cement and healthcare. "Growth stocks in the digital space also have the potential to move up," Vijayakumar noted, whilst indicating that IT sector performance could remain subdued due to concerns about U.S. economic deceleration.
3) Dollar weakness supports market sentiment
The U.S. dollar declined to 98.246 against major currencies on Monday, reaching a three-year low and providing additional support to Indian equities. A declining dollar traditionally benefits India's import costs and encourages foreign investment in emerging markets.
"A weaker dollar will definitely lead investors to look outside the U.S., and this will be a big opportunity for countries like India," said Madan Sabnavis, Chief Economist at Bank of Baroda. "But we need to see if the U.S. does anything to encourage investment in the country following these protective tariffs. The net effect may be hard to conjecture right now. But to begin with, there would be a flow of FPI funds to emerging markets, including India," he added according to an ET report.
The domestic impact of dollar depreciation will also be influenced by other currency movements. A weaker dollar typically strengthens other currencies under similar conditions, potentially affecting India's export competitiveness. Therefore, monitoring peer currency performance remains crucial, according to Sabnavis.
4) Trade Relief Extends Market Support
Market confidence remained strong following the U.S. President Donald Trump's decision for delaying additional tariffs on 75 nations, including India, until July 9. This temporary suspension, declared in the previous week, provided respite to markets amidst rising international trade conflicts.
The initial news triggered positive movements across global shares, whilst the ongoing exemption continues to bolster Indian markets by reducing worries about possible export disruptions and trade-related fluctuations.
5) Oil Price Decline Brings Advantage
Oil values declined over 1.5% on Monday as market participants returned attention to worries that U.S. tariffs on trade partners could create economic challenges, potentially limiting fuel consumption growth.
Brent crude futures fell $1.10, or 1.6%, to $66.86 a barrel at 0255 GMT, after a 3.2% increase on Thursday.
For India, a major oil importing nation, reduced crude prices provide considerable advantage, lessening strain on the current account deficit and helping control inflation pressures.
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