Why BSE Sensex Soared for 5th Straight Session?

On April 21, 2025, Indian stock markets rallied for the 5th straight session, fuelled by trade hopes and strong bank earnings. The BSE Sensex soared as much as 879 points intraday, touching a high of 79,432.78. At 12:40 PM, the 30-share Sensex stood at 79,604.44, up 1.34% from Thursday’s close of 78,553.20.  

Indian stock markets continued their upward momentum driven by optimism over a potential trade deal with the United States, robust quarterly results from top private banks, and renewed buying interest from foreign investors. 

What’s Driving the Market Rally? 

Trade Talks with the US Gain Momentum 

US Vice President JD Vance began a 4-day visit to India today, with plans to meet Prime Minister Narendra Modi. The visit has sparked hopes of an expedited trade pact between the two countries, especially as India aims to avoid steep US tariffs and strengthen its ties with the Trump administration. 

Banking Stocks Lead the Charge 

Banking shares were among the top gainers, with the Nifty Bank index hitting a record 55,386.45, up 2% on the NSE. The surge came after HDFC Bank and ICICI Bank reported better-than-expected earnings for Q4 FY25. HDFC Bank touched a record ₹1,950.70, gaining nearly 2%, while ICICI Bank rose around 2% to an all-time high of ₹1,436. 

Return of Foreign Investors 

After a brief selling spree earlier this month, foreign portfolio investors have turned net buyers once again. In the past three sessions alone, FPIs have poured ₹14,760 crore into Indian equities, encouraged by a dip in the US dollar index to near the 100 mark and expectations of continued dollar weakness. 

 Also Read: Nifty 50 Surges Past 24,100 Mark on Apr 21; Banking Stocks, FPI Inflows Power Market Rally

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