Sensex, Nifty surge: Key drivers of today’s market rally

Indian equity benchmarks soared in Monday's trade, fueled by gains across all sectors. The BSE Sensex surged over 1,300 points to surpass the 80,450 mark, while the NSE Nifty jumped nearly 400 points to trade above 24,300. At last check, the Sensex was up 1,261 points at 80,378, and the Nifty gained 396 points to reach 24,303.

Market capitalization boost

The sharp rise in equities added Rs 8.65 lakh crore to the BSE market capitalization, taking the total to Rs 441.37 lakh crore from Rs 432.71 lakh crore on Friday. Heavyweights like Reliance Industries, ICICI Bank, HDFC Bank, Larsen & Toubro, Mahindra & Mahindra, and SBI contributed significantly to the rally.

Key drivers of the surge

Political clarity boosts sentiment
The National Democratic Alliance's (NDA) decisive win in Maharashtra, securing 233 of 288 seats, lifted investor confidence. Political stability is expected to drive policy continuity, which is positive for the markets.

Adani Group recovery
Adani Group stocks rebounded strongly after addressing recent allegations of bribery and fraud by US authorities, which the conglomerate denied as "baseless."

Global market cues
Positive cues from Asian markets further supported Indian equities. Japan's Nikkei rose 1.17 per cent, while South Korea's Kospi gained 1.44 per cent, reflecting optimism across the region.

Nifty outlook and MSCI rebalancing
The Nifty’s upward movement points to a potential swing target of 25,262. Analysts advise monitoring support levels at 23,800, with resistance around 24,420–24,770.

MSCI’s rebalancing, effective today, is expected to bring inflows of approximately $1.7 billion into Indian markets. HDFC Bank and five other stocks are anticipated to witness significant buying, along with changes in the MSCI Smallcap Index, which includes 13 additions and seven deletions.

Driven by favourable political outcomes, recovery in Adani stocks, and robust global cues, Indian markets showcased strong momentum. Investors remain optimistic about sustained inflows and further market growth.