Markets rally over 6% in 4 days, investors gain Rs 25.77 lakh crore – Key points

Indian markets wrapped up the trading week on a high note, with benchmark indices BSE Sensex and Nifty50 registering gains of over 6 per cent in the last four sessions.
This spike was fueled by a combination of returning foreign investment, eased inflation, and hopes for a favourable monsoon season that helped lift investor confidence.
The BSE benchmark Sensex surged 4,706.05 points, or 6.37 per cent, while the NSE Nifty climbed 1,452.5 points, or 6.48 per cent, over the four-day rally. Investors’ wealth skyrocketed to Rs 25.77 lakh crore, bringing the total market capitalisation of listed companies on the BSE to Rs 4,19,60,046.14 crore (approximately $4.90 trillion).
Stock exchanges remained shut today on the account of Good Friday.
Why are Indian equities surging ?
Analysts attributed the surge to a mix of domestic and global triggers. Vishnu Kant Upadhyay, AVP, research & advisory at Master Capital Services, said the rally was driven by foreign fund inflows, temporary pause on tariffs by the US and further monetary easing by the RBI, all of which have helped Indian equities bounce back despite lingering global uncertainties.
Returning of FPIs
Foreign investors have net bought over $1 billion of Indian stocks over the last two trading sessions, provisional exchange data showed. “In the last three trading sessions, foreign portfolio investors purchased over $1 billion worth of Indian equities after a prolonged selling streak,” Upadhyay said.
Tariff pause relaxations
The US government’s announcement of a temporary suspension on tariffs, along with the possibility of opening negotiations with other countries, also sparked a wave of optimism in the markets. This development eased investor concerns over escalating trade tensions and played a key role in triggering a relief rally across global stock markets.
RBI’s monetary policy gift
In addition to this, the Reserve Bank of India’s announcement of a 25 basis point rate cut on April 9, the second consecutive cut this year, also added to the rally. The monetary policy committee (MPC), consisting of three central bank members and external members unanimously decided to reduce the repurchase or repo rate by 25 basis points to 6 per cent.
More significantly, the RBI also shifted its policy stance from “neutral” to “accommodative”, signalling the possibility of further easing in the months ahead.
Lower retail inflation
Retail inflation easing to 3.34 per cent in March, the lowest in nearly six years, also buoyed market sentiment. The low retail inflation on the account of declined prices of vegetables, eggs and protein rich items further strengthening the case for a third rate cut in the future, as it remained below the bank’s median target of 4 per cent.
Favourable weather for agri sector
The India meteorological department predicted above normal rainfall in the upcoming southwest monsoon season sparking hopes for a strong agricultural output, a key factor for India’s largely agrarian economy.
Ajit Mishra, SVP research at Religare Broking, said, “As the week progressed, market participants responded positively to a slew of favorable developments, including updates on a normal monsoon, easing retail inflation — which raised hopes for potential policy rate cuts — and the absence of any major negative surprises from global markets.”

Highlights:

Analysts expect corporate earnings and global trade updates to guide next week’s sentiment.