Reliance Rally drives Sensex to a peak of 4 months, even though geopolitical risks are Weoom | Einsmark news

India’s stock market indices rose on Monday and hampered a two-day loss line, while investors in the index heavyweight Reliance Industries Ltd piled up after an excellent quarterly earnings and sent the share to a six-month peak. Markets are ready to consolidate their profits in the upcoming sessions, subject to geopolitical conditions that do not worsen, say analysts, whose view of earnings in January March continues to mix. However, they are unanimous that the markets will fall if the tension between New Delhi and Islamabad escalates, after terrorists have linked 26 tourists in Jammu & Kashmir’s Pahalgam from Jammu and Kashmir last week. The rally in the oil-to-telecomer drove the Sensex to a closing peak of four months from 80,218.37, higher 1.27%. The Nifty jumped 1.2% to close on 24,328.50, also led by profits in Reliance, which make up two fifths of the 50 stock market’s 289-point profit on Monday. Read more: Can ease match dangers for confidence in FY26? Investor Wealth has risen £ 4.53 trillion, powered by foreign portfolio investors buying shares worth £ 2,474 crore. Domestic institutions bought shares worth £ 2,818. “The flow has improved, but they are not supported by earnings so far,” says Nilesh Shah, MD, Kotak Mahindra AMC. Shah added that the prevailing geopolitical tension could increase the volatility. Analysts expect foreign flow in the Indian markets to continue. “We expect money to continue to flow from the US markets, which are the primary markets for global liquidity. As liquidity moves out of these markets, we expect continuing inflow to India under normal circumstances. Economics and the steps the government has taken to stabilize growth, we expect India to continue to attract investments, whether passive or active, ”said Sumit Bhatnagar, equity fund manager at Lic Mutual Fund. The dependence rose 5.3% to settle to £ 1,368,8, which closed above its 200-day moving average of £ 1,339,98, a bullish sign. It was also the highest closure for the stock since October 21 last year, when it was completed at £ 1,369.2. On Saturday, the company achieved a consolidated net profit of £ 22,434 in the Q4FY25, with an estimate of Bloomberg of £ 18,471 crore. However, Monday’s profits came to slightly lower volumes, which led to Reliance stealing the spotlight. The volumes on NSE, the country’s largest stock exchange, stood at £ 90.099 crore, which has been below average of £ 99,616 so far in the month. After the rally of Monday, the Nifty recovered more than 50% of its 4,534 points drop from a record high of 26,277.35 on September 27 to a low of more than 21,743.65 on April 7 this year. The next major resistance for the Bellense Index is 24,545, which coincides with a 61.8% recovery of the low of 21743.65. Earnish growth for the early birds of Q4FY25 is muted, compared to the earnings growth of early birds in Q4FY24. The year-on-year net sale growth for the 215 early bird businesses in Q4FY25 was at 4.89%, compared to 14.77% in Q4FY24. G. Chokelingam, founder of Equinomics, believes that earnings were an improvement, but warned that escalation in border tension could get the field for the recovery that was going on after April 7. Independent analyst amableesh Baliga said although Reliance did better than most estimates, he remains uncertain whether this rally can still be considered a turning point for the stock. “We will have to wait and see if the rally means a turnaround for the stock that has been a laugh lately. The quarterly earnings have so far not made me enthusiastic to the point where I can say that the market rally will continue,” Baliga said. Read more: Dixon, Amber, who benefits from new production incentives, has underperformed US rates Reliance since October 1 last year when the market correction began. While Reliance lost 6.5%, from a peak of £ 1,464.8 on October 1 to £ 1,368,8 on Monday, the Nifty dropped 5.7% from 25,797 to 24,328,5 in the same period. While a floor of the boundary can cause a correction, analysts like Baliga do not expect markets to review the low of 21,743,65 on April 7. Apart from the benchmarks, the broader markets led by the Nifty Midcap 150 a high of two and a half months of 19.966.7. Unlike the Nifty 50, however, the Nifty Midcap 150 trades are under its 200 DMA 20567. The Nifty, which closed on Monday at 24,328.50, traded above its 200-day DMA of 24.050.9. Some of the most active shares traded on the NSE, apart from the dependence, have defensive names such as Hal, Mazagaon Dock, Garden Reach Shipbuilders and Engineers, and Bel, which rose between 2.6% and 8% on Monday. The recent rally was led by FPI flow of £ 32,687 crore between April 16 and April 25. Over the same period, these have contributed a lower value to the rally of £ 3,387 crore. Traders sold more wells than calls on Monday, a sign of bullishness because they do not expect markets to fall in the current week. The Put-Call ratio of all Nifty options compiled rose to 1.21 on Monday from 0.87 on Friday. This means that traders sold 121 wells for every 100 calls sold to sale the premiums paid by the Put buyers in the event of the markets. George Thomas, fund manager, Quantum AMC, said that the economy has faced a slowdown over the past few quarters, and that the trend is ongoing, with poor results, except for a cement player growing good volume, possibly helped by the government’s captex. He added that although consumption and credit growth remain weak, factors such as benign inflation, rate cuts and budget adjustments to increase disposable income for salaries can help improve things. “When we look forward, the Indian markets have historically seen 12-13% earnings growth, and this trend must continue, even if the market remains flat for a while. With the growth of earnings, the valuations will become more attractive, and we remain optimistic in the long run,” Thomas added. (With input from Ram Sahgal)