Why Indian Stock Market Rallied Today? Explained With 5 Reasons

Nifty and Sensex Opening Price Today

On Tuesday, April 15, the Indian stock market opened up 2%. The Nifty 50 opened higher at 23,368 while the Sensex opened stronger at 76,852 and rose to an intraday high of 76,907 as well. 

The possible relaxation of auto tariffs and a surge in international markets have increased investor optimism.

All of the April 2 losses have been recovered by the Nifty50 index. Due to over 2% advances in midcap and smallcap Indices, the overall market opened higher. 

A positive opening for Indian indices was recorded after a three-day break, with both Sensex and Nifty getting positive momentum.

With the rally being supported by favorable global cues, small and midcaps have outperformed the broader indices, while rate sensitives such as banks and financials form the top gainers.

At 9:23 am the Indices were at:

 

Major Sector Contributed to Today’s Rally

After US President Donald Trump hinted that he would temporarily exclude the auto industry from tariffs, auto stocks were the sector with the largest gain, up 3% during the first session.

All the Asian markets were trading in the upper range except for the Hang Seng and Shanghai Composite. On Tuesday morning, Japan's Nikkei reported significant increases due to optimism on the suspension of auto tariffs.

 

Major Stocks For Today’s Market Surge

Those stocks are Tata Motors, Mahindra and Mahindra, Larsen and Toubro, Shriram Finance, and HDFC Bank which were among the biggest gainers onto the Nifty50 index as they were trading by as much as 4.9% during the early hours of trading on Apr 15, 2025.

 

5 Key Reasons Behind Today’s Rally

Today Apr 15, 2025, saw a rally in the share market blacked by strong opositive market factors. The top five such reasons behind are mentioned below-

1. US Stock Market And Bond Market Crash

Major indices such as the Dow and S&P 500 fell due to Trump's tariffs. Over $3 trillion market value was wiped out.

The bond market too suffered yields on 10-year Treasuries reached 4.5%, while the 30-year saw its biggest jump since 1982.

Investors panicked over inflation, trade wars, and margin calls. The 60/40 portfolio met its demise and global markets were shaken.

2. Trade Agreements Could Replace the Trade War 

After Trump paused 90 days of Tariff relief from the world except China, experts are expecting it can open a backdoor for trade agreements instead of war in trade. It's important to note US indices declined heavily since the Tariffs came into effect.

3. Weakening of the US dollar and Strengthening Rupee

After almost two years, the US dollar index is below 100, indicating pressure on all US assets, including Treasury yields, stocks, and currency. Therefore, after withdrawing funds from the US bond, equities, and currency markets, FIIs are anticipated to alter their behavior in the Indian share market and invest in Dalal Street-listed stocks.

4. Despite Trump's Trade About Rate Cuts, the US Fed is Hawkish

The Fed of the US keeps a hawkish stance despite calls for rate cuts by Trump, as it is focused firmly on the control of inflation. This means that their central priority lies in price stability and not in short-term increases for the economy. Trump argues for cuts based on justification for growth, and yet the Fed too is cautiously observing the situation. 

5. RBI Remains Optimistic on Inflation

The Reserve Bank of India has changed its prediction for the inflation rate to 4% for FY 2025-26 due to the said improvement in food inflation. The CPI Inflation is projected as 3.6% in Q1 and 4.4% in Q4 respectively. GDP growth remains constant at 6.5% thanks to strong demand from urban and rural segments. The RBI also reduced the repo rate to 6% to renew its call for growth.

 

Other Key Reasons That Supported Indices Rally

After RBI cut Repo Rate by 25 bps in the meeting held last week, major Indian Banks passed on this to their customers. These Banks are SBI, HDFC Bank, and BoI which supported the market rally today and also seeing a huge high in their share prices.

SBI Reduces Interest Rate by 25 bps

SBI share was increased by 2.07% to Rs.769.45 on the NSE at 10:00 am following the news of a reduction in the interest rate for new and existing borrowers under its lending scheme by 25 bps. 

HDFC Bank Slashes Savings Account Interest to 25 Bps

The market share pricing data shows that HDFC Bank increased as much as 3.87% on the NSE, reaching Rs.1,876.8 per Share. Early morning at 9:49 am it was above the line of 3.49% to Rs.1,869.8.

The rest of the news comes on the heels of the banks cutting the rate on savings accounts by 25 basis points to 2.75%. 

Bank of India's Reduces Home Loan Interest Rates

The Mumbai headquartered Bank of India has slashed the home loan interest rate by 25 bps which benefits both customers who have just applied and those who are already borrowing. The home loan rate is now 7.9% per year based on the CIBIL score.

 

Conclusion

The Indian stock market rallied on April 15, 2025, as the good news on global cues, relieving trade tensions, and domestic favorable conditions like the recent RBI rate cuts poured in. The market saw investor enthusiasm boosted by a weakening dollar from the US and buoyed further by the Reserve Bank of India's upbeat view on inflation. Top bankers such as SBI, HDFC Bank, and Bank of India also contributed to cuts in interest rates. 

Disclaimer: No buy or sell recommendation is given. No investment or trading advice is given. Always discuss with an eligible financial advisor before investment decisions.