American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Sensex smashes 81K: what’s fueling the unstoppable market rally?

by admin May 2, 2025
May 2, 2025
Sensex smashes 81K: what’s fueling the unstoppable market rally?

Indian equity markets surged higher in Friday’s trade, with benchmark indices climbing significantly as a confluence of positive factors boosted investor sentiment.

Easing global trade tensions, a sharp drop in crude oil prices, supportive domestic auto sales figures, and record-high Goods and Services Tax (GST) collections all contributed to the bullish mood, propelling the Sensex past the 81,000 mark.

Returning to trade after a public holiday on Thursday for Maharashtra Day, the markets displayed strong momentum.

The BSE benchmark Sensex climbed 766.49 points, or 0.96 per cent, to hit 81,008 in early deals.

The NSE Nifty 50 barometer traded strongly near the 24,600 level, up 251.65 points or 1.03 per cent at 24,585.85.

Market breadth was firmly positive, with 2,307 shares advancing against 1,205 declining stocks on the BSE.

Easing trade tensions fuel global optimism

A key driver for the positive sentiment was the perception of easing global trade friction. Kranthi Bathini of WealthMills Securities noted that tensions between the US and China appeared to lessen as “both the nations expressed willingness to start trade negotiations”, as reported by Business Today.

He also highlighted comments from the US Trade Representative suggesting that trade deals with key partners, potentially including India, could be finalized within weeks, offering comfort to global markets.

This comes despite recent concerning US economic data, including a reported 0.3% contraction in Q1 GDP and signs of a cooling labor market, which have raised some global growth concerns.

Oil price slump offers relief

Adding a significant tailwind, particularly for oil-importing nations like India, was a sharp drop in global crude oil prices.

Devarsh Vakil, Head of Prime Research at HDFC Securities, informed Business Today that oil prices experienced their “most significant monthly drop in almost three and a half years,” partly attributed to signals from Saudi Arabia about potentially increasing production to gain market share.

Lower oil prices help alleviate inflationary pressures and reduce India’s import bill.

Domestic strength: auto sales and record GST

On the domestic front, monthly sales figures reported by Indian automakers for April generally met market expectations, providing reassurance about demand in the sector, with M&M highlighted as a strong performer.

Furthermore, India’s GST collection figures for April soared to an all-time high of approximately Rs 2.37 lakh crore, marking a 12.6 per cent year-on-year increase.

This record collection, the highest since the tax regime’s introduction in 2017, signals robust economic activity.

“GST revenue from domestic transactions rose 10.7 per cent to about Rs 1.9 lakh crore, while imported goods were up 20.8 per cent to Rs 46,913 crore,” noted Vakil.

India-US trade deal hopes persist

Optimism surrounding a potential bilateral trade agreement between India and the US also continues to support market sentiment.

A note from Nomura suggested India’s “relative tariff advantage will sustain” due to its potential first-mover status on a trade deal.

The two countries have already signed terms of reference outlining a roadmap for negotiations covering tariffs, non-tariff barriers, services, digital trade, and intellectual property rights, among other areas, according to news reports cited by Nomura.

Technical outlook and near-term caution

Technically, the market trend remains bullish. “Overall trend for the Nifty remains bullish, as it continues to trade above all key moving averages,” stated Vakil, placing immediate support at 24,150 and identifying the 24,450-24,500 band as a significant near-term resistance zone.

However, despite the positive momentum, some analysts advise caution.

Historically, May has shown average seasonality for the Nifty, according to JM Financial.

Adani Ports was a standout gainer among Sensex constituents, rising 6% on strong Q4 results.

Maruti Suzuki, Eternal [as per source], Tata Motors, and IndusInd Bank also saw significant gains of 2-3%.

The post Sensex smashes 81K: what’s fueling the unstoppable market rally? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Europe markets open: Stoxx 600 climbs as China trade talk, Shell results fuel optimism
next post
China signals openness to US trade talks as Hang Seng rises, but deal remains uncertain

Related Posts

Short TGT: Target Corp. Faces Continued Pressure after...

December 19, 2024

European stocks edge higher on 2024’s last trading...

December 31, 2024

io.net partners with Zero1 Labs to boost decentralized AI...

November 20, 2024

Hongkong Post extends suspension of US parcel deliveries...

February 7, 2025

Apple hit with more than $1.95B E.U. antitrust...

March 5, 2024

Moody’s stock has it all, but has one...

September 27, 2024

Robinhood stock price has a 42% upside but...

December 29, 2024

OpenAI embraces for-profit model to chase AI dreams

December 28, 2024

From ServiceNow to SAP: how the software sector...

April 25, 2025

US investigates DeepSeek over possible use of banned...

January 31, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Oil prices face litmus test as US-Iran nuclear talks, OPEC meeting to shape market next week

      June 29, 2025
    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025

    Categories

    • Business (3,285)
    • Investing (2,568)
    • Latest News (2,001)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved