SENSEX surges 6,407 points in seven sessions, NIFTY50 zooms 8.75%: here are key factors behind market rally

The Indian equity benchmarks rose for a seventh session in a row on Wednesday, April 23. With today's gain, the 30-share SENSEX has advanced a whopping 6,407 points or 8.67% to hit an intraday high of 80,254.55 and NIFTY50 index has surged 1,960 points or 8.75% to hit its highest level in nearly five months, data from the stock National Stock Exchange showed. In Wednesday's session, the SENSEX rose as much as 659 points and NIFTY50 index advanced 192 points.

The ongoing rally has been driven largely by domestic factors, led by a strong performance of the banking sector. The NIFTY Bank index touched a record high of 56,098.70 earlier in the day before succumbing to profit booking after a stellar rally which saw it zoom nearly 11%.

Strong performance of banks came on the back of strong set of earnings reported by top private sector lenders and liquidity boosting measures announced by the Reserve Bank of India (RBI) on Monday.

HDFC Bank reported a net profit of ₹17,616 crore for Q4 FY25, up 6.6% quarter-on-quarter, with net interest income rising 10.3% to ₹32,066 crore. ICICI Bank also posted strong numbers, with an 18% annual increase in profit to ₹12,630 crore.

YES Bank surprised investors with a 63% surge in profit to ₹738 crore, pointing to a broader sectoral recovery.

The RBI on Monday relaxed liquidity coverage ratio (LCR) norms for banks, halving the additional buffer for digital deposits to 2.5%. Analysts said the move would ease liquidity pressures and improve operational efficiency for banks which further added to the positive sentiment.

Q4 earnings boost

The robust Q4 earnings season has also bolstered investor sentiment. Apart from banks, HCL Technologies beat expectations despite a challenging environment for the IT sector, and forecasted revenue growth in the range of 2–5% for the next fiscal.

Meanwhile, Commerce Minister Piyush Goyal’s recent trade mission to Europe and the United Kingdom also sent a strong signal to markets. His engagements around new trade agreements are being viewed as part of India’s effort to secure its position in global supply chains amid geopolitical realignments.

Global developments

On the global front, investor sentiment turned optimistic after US President Donald Trump announced a three-month pause on reciprocal tariffs earlier this month, excluding China. The move has made Indian exports to the US more competitive, benefiting sectors reliant on overseas demand.

The market also received a diplomatic boost from US Vice President JD Vance’s four-day visit to India, where he met with Prime Minister Narendra Modi. Vance’s trip hinted at strengthening economic ties, raising hopes of a future bilateral trade deal.

Foreign fund inflows return

The rally has been further fuelled by renewed interest from foreign institutional investors (FIIs). A combination of falling crude oil prices, a weaker U.S. dollar and easing inflation has turned India into an attractive investment destination, analysts said.

FIIs have bought ₹22,371 crore worth of Indian equities in the last four trading sessions, according to data from the National Securities Depository Limited (NSDL).