Stock market today: BSE Sensex ends over 550 points up; Nifty50 above 23,350 – top reasons D-Street bulls partied – The Times of India

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, rallied strongly in trade on Friday. While BSE Sensex crossed the 77,000 mark intraday, Nifty50 went above 23,400. BSE Sensex closed the day at 76,905.51, up 557 points or 0.73%. Nifty50 ended at 23,355.75, up 165 points or 0.71%.
Indian benchmark indices bounced back from initial weakness supported by favourable large-cap valuations and positive sentiment due to reduced foreign selling pressure.
The Nifty has shown positive movement in four consecutive sessions, its longest continuous upward trend in approximately seven weeks. Including Friday’s increase, it has gained about 4% this week, heading towards its strongest weekly performance since July 2022.

Why is the stock market rising?

1) FIIs Return to D-Street
Foreign Portfolio Investors (FPIs) have shifted to buying positions in two out of the last four sessions after consistent selling over months, improving market sentiment. On March 20, FPIs acquired equities worth Rs 3,239 crore, indicating a change in their investment approach, according to an ET report.
“The rally in the market this week, which saw the Nifty rise by 3.5%, has come at a time when trade tensions are escalating, and more is expected when the reciprocal tariffs kick in on April 2nd. The main driver of the rally is the buying by FIIs in the cash market over two days and, perhaps more importantly, a sharp decline in their short positions and an increase in long positions in the futures market,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
2) Fed Signal on Rate Cuts
The US Federal Reserve maintained steady interest rates while confirming its outlook for two rate reductions by 2025 end, consistent with previous December projections. Despite elevated inflation expectations due to forthcoming tariffs, the anticipated rate cuts have alleviated worries about stringent monetary policy.
The potential reduction in US interest rates is expected to result in dollar depreciation and decreased Treasury yields, enhancing the appeal of emerging markets, including India, to international investors.
3) Falling US Bond Yields
US Treasury yields have experienced a decline, with the 10-year yield decreasing to 4.25% from approximately 4.5% in mid-February, whilst the 2-year yield reduced to 3.97% from 4.28%. The US Dollar Index trading under 104 has additionally bolstered emerging market sentiment.
The combination of a softer dollar and reduced US bond yields increases the attractiveness of Indian equities to overseas investors, potentially leading to increased market inflows.
4) Technical Reasons
Sameet Chavan, Head of Research, Technical and Derivative at Angel One, said, “Bulls continue to dominate as the Nifty extended gains for the fourth straight session. With strong momentum and evolving price patterns, we expect this rally to continue in the near term.”
He observed a definitive breakout from a Falling Channel pattern, accompanied by the RSI surpassing 50, indicating positive momentum shift.
Regarding crucial levels, Chavan identified 23,300-23,400 as immediate resistance, followed by 23,800 as the subsequent key level. He specified support levels at 23,000 (50-DEMA) and 22,800 as substantial support zones.