Sensex Soars 1000 Points: Investors Rejoice as Top Stocks Steal the Show

In a stunning display of market strength, the Sensex soared 1,000 points, delivering a windfall for investors and spotlighting the stellar performance of top stocks. The dramatic climb has sparked widespread optimism, with traders cheering the robust gains across the board.

Banking stocks gained the most
Stocks like Kotak Mahindra Bank, Power Grid, Larsen & Toubro, Axis Bank and SBI Life Insurance saw a rise of up to 3%. Strong buying in banking stocks strengthened the market.

5 big reasons for the boom in the stock market
1. Withdrawal of foreign investors

Foreign portfolio investors (FPIs) invested ₹7,470.36 crore on Friday, strengthening investor confidence in the market. The trend of foreign selling that has been continuing since October 2024 now seems to be reversing.

2. Strength of rupee against dollar
The Indian rupee strengthened by 12 paise to 85.86 on Monday. A weak dollar and strong domestic investment supported the rupee.

3. Positive signals from global markets
The Indian markets also got strength from the rise in US markets. Dow Futures was up 0.47%, while S&P 500 and Nasdaq also registered gains.

4. Strong performance of banking stocks
The Nifty Bank index jumped over 1,000 points and hit a high of 51,635. Kotak Mahindra Bank, Canara Bank and PNB rose over 3%.

5. Increasing confidence of investors
Motilal Oswal's research head Siddharth Khemka says that the boom may continue due to the return of FII investment and strong economic signals in the Indian market.

Technical Analysis: What will be the next level for Nifty?
According to Anand James, Chief Market Strategist, Geojit Financial Services, Nifty has completed the first leg of 23,450-23,807 and is trading above the upper Bollinger band for the third consecutive session.

Potential support and resistance levels

Resistance: 23,500 - 23,807
Support: 23,300 - 23,160
If Nifty stays above 23,500, then further uptrend can be seen. On the other hand, if it falls below 23,300, correction till 23,160 is possible.

What's next in the market?
The bullish trend will remain in the market due to increase in foreign investment and strength of banking stocks.

Experts Reaction
According to VK Vijayakumar, Chief Investment Strategist, Geojit Investment Services, the market has an amazing ability to surprise. Last week, Nifty surprised everyone when it registered a gain of 4.6% in a week. This feat happened amidst the pressure when the global markets were nervous due to the possibility of Trump's reciprocal tariffs being implemented from April 2. What is the reason behind this sudden reversal in the trend in the Indian market? Actually, the reason behind this is that the improving macro and reasonable valuation of the Indian economy has turned FIIs from sellers to buyers.

April 2—the day of reciprocal tariffs—is very close and the uncertainty surrounding it is huge. Investors may wait for clarity on reciprocal tariffs before making further investments.