Broad-based rally lifts markets: Sensex soars 2,000 pts, Nifty tops 22,900; ₹14 lakh crore added to investor wealth

Indian equities staged a sharp rebound on April 1, with benchmark indices surging on the back of broad-based buying across sectors, signalling a recovery after the recent bout of volatility. Sentiment was buoyed by firm global cues, with Wall Street rallying overnight and Asian markets opening higher, amid optimism that the West Asia conflict which has rattled global markets and disrupted energy supplies may be nearing a resolution.

The BSE Sensex surged 1,964.40 points, or 2.73%, to 73,911.95, while the Nifty 50 jumped 601.15 points, or 2.69%, to 22,932.55 in early deals, supported by strong gains in financials, IT, auto and metal stocks.

The rally extended beyond frontline indices, with broader markets emerging as top performers. The Nifty Midcap 100 and Nifty Smallcap 100 indices climbed 3.4% and 3.7%, respectively, reflecting improved risk appetite among investors.

The strong buying momentum added nearly ₹14 lakh crore to investor wealth, pushing the total market capitalisation of BSE-listed companies to ₹425.34 lakh crore.

Sectorally, auto, PSU banks, metals, IT and consumer durables led the gains, while easing volatility further supported sentiment, with India VIX declining over 10%.

The market breadth, indicating the overall strength, remained firmly positive. Out of 3,598 stocks traded on the BSE, as many as 3,189 advanced, compared to just 302 declines, while 107 stocks remained unchanged.

Despite the strong rebound, only 26 stocks touched their 52-week highs, while as many as 130 remained at 52-week lows, indicating that pockets of weakness persist beneath the headline indices.

Broad-based rally across indices

The market witnessed broad-based rally across indices, with all Sensex heavyweights trading in the green. Retail and defence stocks led the charge, with Trent emerging as the top gainer, surging 6.49%, followed closely by Bharat Electronics, which jumped 6.34% amid continued momentum in defence space.

Infrastructure and logistics player Adani Ports and Special Economic Zone gained 5.10%, while aviation major InterGlobe Aviation  rose 4.74%, reflecting strong buying interest in cyclical and travel-linked stocks. Financial heavyweight Bajaj Finance  advanced 4.67%, contributing significantly to the index gains.

Engineering and capital goods major Larsen & Toubro climbed 3.87%, while auto major Maruti Suzuki added 3.67%. IT bellwether Tata Consultancy Services rose 3.43%, alongside gains in HCLTech (+2.86%) and Infosys (+2.53%), indicating a recovery in technology stocks.

Among other notable movers, Mahindra & Mahindra gained 3.37%, Axis Bank rose 3.13%, and Titan Company advanced 3.11%. Banking stocks saw steady buying, with State Bank of India up 3.04%, Kotak Mahindra Bank gaining 2.63%, HDFC Bank rising 2.56%, and ICICI Bank adding 1.48%.

Among index heavyweights, Reliance Industries  gained 2.09%, while telecom major Bharti Airtel rose 1.44%. Power and pharma stocks saw modest gains, with NTPC Limited (+1.32%), Power Grid Corporation of India (+1.15%) and Sun Pharmaceutical Industries (+1.23%) inching higher. Cement major UltraTech Cement added 1.42%.

Indications of de-escalation in the West Asia crisis lift market sentiment

The sharp upmove in equities is largely being attributed to value buying after the recent correction, even as investors remain cautious amid evolving global cues and geopolitical developments. Market participants are closely tracking signals around the West Asia conflict, which has been a key driver of volatility in recent weeks.

Oil prices were steady on Tuesday amid hopes of an end to the Iran conflict, which has raised concerns over potential supply disruptions due to a prolonged shutdown of the Strait of Hormuz, a crucial route for global oil shipments. Brent crude for May delivery were trading at around $112.96 per barrel, after slipping 1% earlier in the session.

According to VK Vijayakumar, there are early indications of de-escalation in the conflict, with statements from Iranian authorities suggesting openness to ending hostilities. “The Iranian president’s willingness to end the war and confirmation from the foreign minister that messages were exchanged with the U.S. indicate that the conflict may be nearing a resolution,” he said.

He added that this optimism is already being reflected in declining crude prices and easing US bond yields. Markets, he noted, may begin pricing in de-escalation ahead of any formal announcement.

Echoing a similar view, Hitesh Tailor, Research Analyst, Choice Equity Broking, pointed out that several stocks witnessed steep declines at the end of March due to tax-loss harvesting, making them ripe for a near-term rebound.

However, experts continue to advise caution. Devarsh Vakil said that given persistent global uncertainties and heightened volatility, investors should adopt a selective approach and focus on fundamentally strong stocks. He added that fresh long positions should ideally be taken only after the Nifty 50 decisively breaks above and sustains the 24,000 level, which would signal a more durable bullish trend.

On the geopolitical front, developments remain fluid. The U.S. is reportedly signalling that military operations could wind down within two to three weeks, with President Donald Trump expected to outline Washington’s next steps in an address on April 2. Meanwhile, Iranian President Masoud Pezeshkian has indicated readiness to end hostilities, albeit with certain guarantees, even as Tehran has warned of potential retaliation against American interests if tensions escalate further.

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