Nifty, Sensex Jump Over 1%: Three Reasons Why Markets Are Rising Today

The bounce was led by banking and IT stocks. Nifty Bank surged 2.16% to 55,461.65, while Nifty IT jumped 3.46% to 34,528.55. (Representative image. Source: Canva AI)

The Nifty 50 jumped as much as 1.42% to hit a high of 24,189.55 on Monday, while the Sensex climbed 1.38% to an intraday peak of 79,635.05, extending gains to a fifth straight session.

Markets reopened after an extended break, with Friday being a holiday for Good Friday — capping off two truncated trading weeks that saw a total of three market holidays. This week, however, all five trading sessions are intact, giving investors a full window to reposition and participate.

The bounce was led by banking and IT stocks. Nifty Bank surged 2.16% to 55,461.65, while Nifty IT jumped 3.46% to 34,528.55, lifted in part by Infosys Ltd.'s better-than-expected March-quarter results. Despite guiding for muted growth in fiscal 2026, analysts see the stock as a favourable long-term play, amid easing global uncertainty.

Market breadth was firmly positive, with 2,869 stocks advancing and only 169 declining.

Here's what's powering the surge:

Banking Stocks Lead The Show

The Nifty Bank hit an all-time high on Monday, rising over 2% on the back of a bullish outlook for the sector. Investors are betting on lenders due to strong March quarter results, improved liquidity conditions and back-to-back rate cuts from the Reserve Bank of India.

Heavyweights like HDFC Bank Ltd., ICICI Bank Ltd. and Yes Bank Ltd. have all posted robust profits for the quarter, supported by higher interest income and improved asset quality. The RBI's recent 25 basis point rate cut, along with a shift to an accommodative stance, has also fuelled optimism.

Liquidity conditions remain supportive — the RBI absorbed Rs 3.46 lakh crore from the system as of March 31, up sharply from Rs 87,702 crore at the end of December. This is seen enabling banks to lower lending rates, improve credit growth and sustain earnings momentum.

The sector is also seen as insulated from global tariff shocks due to its limited trade exposure, offering relative stability amid geopolitical uncertainty.

Overseas Buyers Return

Foreign portfolio investors have turned net buyers for the last three sessions, pumping in Rs 14,670 crore between Tuesday and Thursday last week. The trend continues today, giving markets another leg up.

On Tuesday, April 15 alone, FIIs bought equities worth Rs 6,065.78 crore — the third-biggest single-day inflow of the year. This marks a sharp reversal from the nine-day selling streak earlier this month and is helping fuel risk-on sentiment in domestic equities.

Emerging Markets Rally On Weak Dollar

Emerging market currencies and stocks are rallying as the US dollar continues to lose ground. The Bloomberg Asia Dollar Index which is a gauge of developing market currencies rose 0.4% on Monday.

The dollar's slide comes amid concerns over the independence of the Federal Reserve, after US President Donald Trump reportedly weighed removing Fed Chair Jerome Powell. That, coupled with Trump's recent reluctance to escalate tariffs on China, has sparked relief across global risk assets.

On Friday, Trump said he didn't want to keep raising tariffs on Beijing, signalling a possible pause in trade tensions. That's helped support global equities — especially in markets like India, which benefit from reduced external volatility.