Blockbuster Comeback: 5 Reasons Why Sensex Hit 4-Month High, Investors Wealth Surged Rs 4,51,860 Cr In 1-Day

Stock Market Updates: It was a blockbuster Monday for Sensex and Nifty as bulls made a strong comeback after two consecutive sessions of losses. Sensex peaked at a month high and crossed the 80,300 mark, while investors' wealth gained nearly Rs 4.52 lakh crore in a single day. Its counterpart, the Nifty 50, also joined the bullish wagon with gains of more than 5% and reclaimed over the 24,350 zone.

"The rally was primarily driven by heavyweight stocks such as Reliance Industries, HDFC Bank, and L&T, with sectoral support coming from metal, PSU banks, defence, and real estate stocks. However, the IT sector lagged due to weak global cues and earnings concerns," said, Mandar Bhojane, Research Analyst At Choice Broking.

Here are 5 reasons why the market made a strong bull run on April 28:

1. Reliance Industries Strong Rally:

The star performer of Monday was Mukesh Ambani's Reliance Industries with gains of nearly 6% during the trading hours, with market cap skyrocketing by more than Rs 1 lakh crore. Reliance stock ended at Rs 5.3% to Rs 1,368.50 near its intraday high. The bulls were fuelled after Reliance reported steady Q4 results while announcing plans for fundraising worth Rs 25,000 crore through NCDs and dividend recommendations.

2. Defence Stocks Fired Up!

Amidst India-Pakistan tension and 26 Rafale-Marine aircraft deal worth Rs 63,000 crore with France, sparked a new wave of bulls in defence stocks. Bharat Electronics, Bharat Forge, Cochin Shipyard, Data Patterns, Hindustan Aeronautics, Bharat Dynamics and Mazagon Dock Shipyard stocks rallied by 3% to 6% on April 28th.

3. Banking Stocks On Bull Run:

Banking stocks rallied robustly on Monday as well. Nifty Bank advanced by 1.4%, while BSE Bankex climbed by 950 points or 1.5%. Stocks like SBI, Axis Bank, Bank of Baroda, Canara Bank, Yes Bank, HDFC Bank, Kotak Bank, IndusInd Bank, and ICICI Bank zoomed by 0.5% to 2.5%. Q4 results of banking companies have boosted sentiment.

4. Auto Stocks Vrooming!

Despite Maruti Suzuki's lower-than-expected Q4 results, auto stocks witnessed heavy buying sentiment. More auto companies are going to announce their Q4 results in the coming days. BSE Auto index rallied by over 811 points.

Heavyweight stocks like Tata Motors, Maruti Suzuki, Bosch, MRF, Motherson Sumi, TVS Motor, Eicher Motors, Bajaj Auto and Hero MotoCorp gained by 1% to 2.5%.

5. Healthcare, Midcap Stocks Advanced:

Other indices like oil & gas, capital goods, metals, consumer durables and energy stocks were top contributors as well. However, BSE Healthcare showed resilient performance with upside of 1.6%. Also, the BSE Midcap index zoomed by nearly 1.5%.

Sensex and Nifty:

After market hours, Sensex finished at 80,218.37, higher by 1005.84 points or 1.27%, while Nifty 50 zoomed by 289.15 points or 1.2% to finish at 24,328.50. BSE listed companies' market cap ended at Rs 42,610,761.10 crore on April 28, which meant investors' wealth climbed by a whopping Rs 451,860.19 crore from an m-cap of Rs 42,158,900.91 crore.

Meanwhile, on April 28th, both FIIs and DIIs were net buyers of Indian stocks. Foreign institutional investors (FIIs) invested Rs 2,474.10 crore alone in equities on Monday, while its counterparts, domestic institutional investors (DIIs) bought Rs 2,817.64 crore worth of stocks. This further added to the upside.

According to Choice Broking's analyst, Defence stocks such as HAL (+5%) and BEL (+3%) gained attention due to rising geopolitical tensions. PSU banks, realty, metal, pharma, and oil & gas stocks rose 1-3%, supported by positive earnings and macroeconomic triggers. On the other hand, the IT index ended in the red due to cautious outlooks from global tech companies. The midcap and small-cap indices outperformed, reflecting strong interest from both retail and institutional investors. He added all eyes will be on corporate earnings, US Fed commentary, and FII flows for further cues.