Stock Market Today: Stock market opened with gains, Sensex rose by 437 points, Nifty crossed 42400

Business News:  Stock Market Today: Unconcerned about India-Pakistan tension and global turmoil, the Indian stock market opened with gains on the last trading day of the week i.e. Friday, May 2, 2025. At around 9:30 am, the Sensex was trading at 80,679.58, up 437.74 points or 0.55 percent. While the Nifty also saw a jump and it rose 93.35 points or 0.38 percent to reach 24,427.55. 

Amidst US tariffs and Indo-Pak tensions, the BSE Sensex saw a gain of about 4% in the last month i.e. April. The return of foreign institutional investors (FIIs) in the domestic market, the forecast of above normal rainfall in the southwest monsoon and the possible hope of an India-US trade deal have strengthened this positive sentiment.

Market Gains Momentum

The softening of stock valuations after the market crash in the last few months also gave a fresh impetus to buying. The BSE benchmark index Sensex, based on 30 stocks, rose 2,827.32 points or 3.65% last month, while the BSE index Nifty rose 814.85 points or 3.46%.  

Strong market performance last month

Amidst this boom, investors' wealth increased by Rs 10.37 lakh crore to Rs 4,23,24,763.25 crore (4.98 lakh crore dollars) in the month of April. This is the second consecutive month when Sensex and Nifty have closed with gains. In the month of March too, Sensex saw a gain of 4,216.82 points i.e. 5.76% and Nifty saw a gain of 1,394.65 points i.e. 6.30%.

Key Factors Behind Market Surge

An expert said that the markets performed well last month due to the reduction in risks related to US customs, a possible US-India trade agreement and strong FII inflows. Puneet Singhania, director, Master Trust Group, says, 'Despite global concerns and tensions with Pakistan, many factors helped the Indian stock market to strengthen and rise sharply in April. The market decline in the last few months reduced valuations, which resumed buying activity.'  Apart from this, the temporary ban on US customs duties and the start of possible trade talks with countries also boosted the rally. Master Trust Group Director Punit Singhania says, "After a long period of selling by foreign investors, it is seen that FIIs became net buyers of Indian equities in April."

The reduction in repo rate boosted the market

 Singhania said that the Reserve Bank's decision to cut the repo rate by 0.25% and change the policy stance from 'neutral' to 'accommodative' also boosted the market sentiment. VK Vijaykumar, Chief Investment Strategist, Geojit Investments Ltd, said, "It is important that the market has shown surprising resilience. Despite the retaliatory tariff incidents and increased tension between India and Pakistan, the Nifty is up in April. This shows that there is no need to panic in times of crisis." 

Future Market Trends

On the possibility of the market boom continuing in May, Singhania said that it will largely be decided by the favorable quarterly results of the companies and the situation at the border. He said, "Investors will also keep an eye on the developments in the US market, as it can have a significant impact on emerging markets like India."