Stock market today: BSE Sensex ends 1,079 points up; Nifty50 above 23,650 - top reasons for D-Street rally

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, rallied strongly in trade on Monday. While the BSE Sensex went above 78,100 level, Nifty50 crossed 23,700 intraday. BSE Sensex ended the day at 77,984.38, up 1,079 points or 1.40%. Nifty50 ended at 23,658.35, up 308 points or 1.32%.
The key stock market indices continued their upward momentum for the sixth straight session on Monday, as the Sensex soared beyond 1,000 points whilst the Nifty50 finished above 23,650, supported by strong performance in banking and energy sectors amidst overseas investment inflows and value buying.

The BSE Sensex climbed 1,079 points, or 1.4%, to end at 77,984, whilst the Nifty50 gained 308 points, or 1.32%, to finish at 23,658.
The aggregate market value of companies listed on the BSE increased by Rs 5.2 lakh crore to reach Rs 418.49 lakh crore, according to an ET report

1) Return of Foreign Investment
Foreign Institutional Investors (FIIs) have shifted to net buyers in three out of four recent sessions, boosting market confidence, following months of continuous selling. FIIs acquired equities worth Rs 7,470 crore on March 21, indicating a notable change in their position.
"Recent activity shows a change in FII strategy in India. The intensity of FII selling had started declining earlier. The recent reversal in FII selling has turned the market sentiments for the better, facilitating a rally in the market," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investment Services.
2) Strengthening Economic Indicators
Indian markets are advancing despite worldwide worries about potential U.S. tariffs becoming effective from April 2. Robust domestic economic indicators and reasonable valuations have motivated FIIs to transition from selling to buying positions. This transformation has resulted in substantial short covering, causing rapid price increases.
"The uncanny ability of the market to surprise was evident last week when the Nifty surged by 4.6% in a week. This happened despite global markets being jittery over fears of Trump's reciprocal tariffs. Improving macros of the Indian economy and fair valuations have turned FIIs into buyers, triggering massive short covering. Even though the undertone of the market is bullish investors have to be careful. April 2nd- the reciprocal tariffs day- is looming large and the uncertainty surrounding that is huge," said Vijayakumar.
3) Declining U.S. Treasury yields
The reduction in U.S. Treasury yields has bolstered Indian equity markets. The 10-year U.S. Treasury yield has seen a decrease of approximately 40 basis points from its peak in mid-February, now resting at 4.27%. The lower yields enhance the appeal of emerging markets, including India, leading investors to reallocate their funds from U.S. equities.
4) Technical indicator
The market's bullish momentum has been strengthened by positive technical indicators. The Nifty displayed a strong white-body Marubozu candle in its weekly chart, largely recovering from February's declines. The index surpassed significant resistance points, ending above the 20DEMA, 50DEMA, and 89DEMA within a single week.
Angel One reports that Nifty has conclusively broken through a Falling Channel pattern, indicating a directional change. The RSI Smoothened has exceeded its previous swing high of 60, corresponding with the price breakthrough at 23,800. This movement, combined with a new buy crossover on the weekly timeline, indicates potential targets at 23,800 and 24,000, in line with the 200DSMA.
Angel One cautions that subsequent market advances may proceed at a slower pace, possibly featuring choppy or consolidating movements. They recommend traders maintain an optimistic outlook, viewing downturns as opportunities to buy, whilst recognising 23,200 and 23,000 as substantial support levels.