Indian Stock Market Surges: Key Drivers Behind Sensex's 650-Point Rally to Near 24,450

Market Bounces Back: Sensex and Nifty Trade in the Green on April 20

The Indian stock market staged a decent recovery from day's lows to trade in the green on April 20. At 10:41 am, the Sensex was up 361.42 points or 0.46% at 78,854.96, and the Nifty was up 92.70 points or 0.38% at 24,446.25. About 1,772 shares advanced, 1,944 shares declined, and 174 shares were unchanged. The Sensex gained 650 points from day's low, while the Nifty reclaimed the 24,400-level.

Sectoral indices were mixed, with only some in the positive territory. The Nifty PSU Bank was the top gainer, up nearly 1%, followed by the Nifty Bank. Most banking and financial services stocks in the 50-stock index gained in early trade. State Bank of India and ICICI Bank were the top gainers, up around 2% each. Axis Bank was also among the top gainers, up 1%.

However, HDFC Bank, which is the index heavyweight peer of ICICI Bank, was trading lower. The stock was down over 1%. The bank reported a net profit of Rs 19,221 crore for the January-March quarter, up 9% year-on-year.

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Other stocks that gained include fast-fashion retailer Trent, which rose 2.5% after its board said it would consider issuing bonus shares on Wednesday.

Key Reasons Behind Market Rise

1. Market Awaits April 22 US-Iran Ceasefire Deadline

The market is in a wait-and-watch mode, with traders reluctant to take aggressive positions amid uncertainty over movement in oil prices and any major action likely only after what happens at the end of the ceasefire deadline. Oil prices rebounded on Monday, a day before the two-week truce between the warring nations ends, after the Strait of Hormuz was shut again as both Iran and the US accuse each other of violating their ceasefire by attacking ships over the weekend.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

2. FII Buying

Foreign investors bought Indian shares for a third straight session on Friday, as per provisional data. They have net bought shares worth about Rs 4,600 crore during the three days. As per provisional data, FIIs were net buyers on April 17 with inflows of around Rs 683 crore, while DIIs were net sellers with outflows of approximately Rs 4,721 crore.

3. Technical Support

The Nifty took support at the major demand level of 24,250 and rose higher, said analysts. From a technical perspective, the Nifty 50 continues to hold above the crucial 24,300 zone, reinforcing the near-term bullish trend. Immediate support is placed near 24,200–24,250, while resistance is seen around 24,550–24,600.

Market Outlook

Near-term direction hinges on Middle East peace progress, crude stability below $100, and foreign flow trajectory. Sustained de-escalation could ease inflation and currency pressures, improving risk appetite for import-sensitive markets like India. Q4 earnings and FY27 management guidance will shape sectoral leadership. Sentiment is constructive but markets will remain selective amid lingering global uncertainties.

Note: Figures are approximate and based on provisional data.