The Sensex soared past the 78,000-mark for the first time on Tuesday, driven by sharp gains in private sector lenders. Foreign portfolio investors (FPIs) continued their buying spree, while Reliance Industries (RIL) also contributed to the bullish sentiment, resulting in the largest single-day gains for the benchmark indices in two weeks.
Closing at 78,053, the Sensex gained 712 points (0.9%), while the Nifty50 index finished at 23,721, up by 184 points (0.8%). HDFC Bank, ICICI Bank, and Axis Bank were the top contributors to the Sensex’s surge, rallying over 2.3% on optimism surrounding credit growth, asset quality, and margins.
FPIs remained net buyers, infusing Rs 1,176 crore into the market, with total investments amounting to Rs 14,828 crore for the month. Private banks outperformed sectors like automobiles and metals this year, with the Nifty Private Bank index recording a 5% increase year-to-date.
Positive macroeconomic indicators, including India’s current account surplus of $5.7 billion in the March quarter, also supported the market’s upward momentum. Analysts highlighted the growth potential of private banks and market-friendly policies as key factors driving FPI investments.
Despite the mixed market breadth, with more declining stocks than advancing ones, both the Nifty Midcap 100 and Smallcap 100 indices hit new highs before retracting from their peaks. The upcoming Union budget and corporate results for the June quarter, along with macro data from the US and China, will be closely monitored by investors for future market trends.