Sensex Surges 1,000 Points as Investors Reap ₹6 Lakh Crore Gain: Election Result Trends and Market Sentiment Analyzed

Indian Stock Market Sees Strong Buying Interest, Sensex and Nifty 50 Surge by Over 1%

The Indian stock market witnessed a significant surge in intraday trade on Monday, 4 May, with the benchmarks - the Sensex and the Nifty 50 - rising by over 1% each. The 30-share pack Sensex surged by 1,000 points, or 1.3%, to an intraday high of 77,911, while the NSE barometer Nifty 50 rose by 1.2% to the day's peak of 24,290.

The gains were broad-based, with the Nifty Midcap 150 and the Nifty Smallcap 250 also gaining more than 1% each. As a result, investors earned about ₹6 lakh crore in a single session, as the overall market capitalisation of BSE-listed firms jumped to ₹469 lakh crore from ₹463 lakh crore in the previous session.

Five Key Factors Behind the Rise in the Indian Stock Market

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Several factors contributed to the surge in the Indian stock market. Firstly, the market is reacting to early results trends of the Assembly Elections 2026 in West Bengal, Tamil Nadu, Kerala, Assam, and Puducherry. The BJP's victory in Assam, West Bengal, and Puducherry, and an improved performance in Kerala and Tamil Nadu, may bring border stability, thereby fueling business and industrial activities.

Secondly, the US-Iran peace talk hopes are rising, with US President Donald Trump announcing that he will review Tehran's new proposal after the West Asian country submitted a 14-point proposal to mediator Pakistan. Iran's plan includes a proposal to end the conflict on all fronts and to enact a new framework for the Strait of Hormuz waterway.

Thirdly, crude oil prices have stabilised, with Brent crude prices easing and trading below $110 per barrel. This is attributed to reports suggesting that Trump said the US would attempt to free up ships stranded in the Strait of Hormuz.

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

Fourthly, positive global cues are also influencing sentiment, with Korea's Kospi jumping by 5% during the session amid positive news flows surrounding the West Asian conflict.

Lastly, technical factors are also contributing to the surge, with the major Call base for the weekly expiry placed at the 24,500 levels, which is likely to act as stiff resistance in the short term.

Going ahead, analysts believe that 23,800 levels should act as major support, while resistance is seen in the 24,250-24,300 range.