Sensex Surges 1,500 Points, Nifty Crosses 23,800 on April 17, 2025: 5 Reasons Why the Indian Stock Market Is Rising?

The Indian stock market is showing strong momentum and seems to be in a bullish phase. On Thursday, April 17, equity benchmark indices—the Sensex and the Nifty 50—recorded sharp intraday gains and looked set to end in the green for the fourth session in a row.

The 30-stock Sensex opened at 76,968, slightly lower than its previous close of 77,044, but quickly jumped more than 1,400 points to touch an intraday high of 78,457. The Nifty 50 began at 23,402, compared to its previous close of 23,437, and surged nearly 2 per cent to reach an intraday high of 23,831.

With this rally, the Sensex has gained more than 4,500 points in just 4 days, and the Nifty 50 has risen by over 1,400 points—translating to a gain of more than 6 per cent.

Optimism About India-US Trade Agreement

One major reason for the stock market rally is the growing optimism around a positive trade agreement between India and the United States. Earlier reports suggested that US President Donald Trump might offer more tariff exemptions following a temporary 90-day pause on reciprocal tariffs.

Experts believe that things are likely to stabilise soon and that a favourable trade deal between India and the US is possible. Some experts say that even if the US implements new tariffs, their impact on India will be much less compared to countries like China.

Also Read, Nifty Weekly Expiry Today: IREDA, Manappuram Finance, and 3 Others Under F&O Ban on April 17.  

Support from Positive Macroeconomic Data

India’s latest economic indicators have been encouraging, boosting investor sentiment. The country’s retail inflation, measured by the Consumer Price Index (CPI), rose by only 3.34 per cent in March on a year-on-year basis. This is lower than the 3.61 per cent recorded in February and much lower than the 4.85 per cent recorded in the same month last year. This marks the slowest pace of inflation in more than six years, since August 2019.

The Reserve Bank of India (RBI) expects inflation to remain close to 4% in the financial year 2025–26. At the same time, GDP growth is also expected to stay strong, with the RBI projecting growth of 6.5 per cent for FY26.

Normal Monsoon Forecast

The market is also being supported by the forecast of a healthy monsoon season. The India Meteorological Department (IMD) has predicted above-normal cumulative rainfall during this year’s monsoon season. This forecast is echoed by private weather agency Skymet, which has also predicted a normal monsoon for India.

Monsoons play a key role in India’s economy. A good monsoon supports the rural economy by improving agricultural income. It also helps keep food inflation in check. If inflation remains low, the RBI may consider cutting interest rates, which is usually favourable for stock markets.

Return of Foreign Portfolio Investors

Foreign portfolio investors (FPIs) have resumed buying Indian stocks, which has helped lift the markets. Data from recent trading sessions show that FPIs have purchased Indian equities worth ₹10,000 crore in the cash segment over just two consecutive sessions.

The return of foreign investors is being attributed to the pause in US tariff changes and the possibility of a trade deal with the US. Additionally, India’s strong economic outlook seems to have attracted foreign investors back into the domestic equity markets.

Rally in Banking Stocks

Banking sector stocks have seen strong gains, further pushing the markets higher. Some of the major banking stocks—such as ICICI Bank, State Bank of India (SBI), Kotak Mahindra Bank, Axis Bank, and HDFC Bank—were among the top gainers in the Sensex, each rising by 2 to 3 per cent.

As a result, the Nifty Bank index jumped more than 2 per cent during Thursday’s session and moved closer to its all-time high of 54,467. Since banking stocks carry significant weight in the Sensex and Nifty indices, their strong performance has a major impact on overall market direction.

With positive developments on both the global and domestic fronts—including strong economic indicators, a possible India-US trade deal, foreign investor support, and a rally in key sectors like banking—the Indian stock market continues to gain ground and shows signs of further strength in the near term.

Conclusion

The Indian stock market is currently witnessing a strong upward trend, driven by both global and domestic positives. Investor confidence is high due to optimism around an India-US trade deal, easing inflation, robust GDP projections, positive FPI inflows, and a strong performance by banking stocks. If these factors continue to hold, the Sensex and Nifty may scale new highs in the coming weeks, making this rally a promising phase for market participants.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.         

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.