FII buying, Reliance rally boost Sensex and Nifty jump over 1%

The benchmark stock indices surged on Monday, driven by a strong performance from Reliance Industries Limited (RIL), whose shares soared more than 5% following better-than-expected Q4 FY25 results.

The S&P BSE Sensex soared over 1,000 points, closing at 80,218.37, while the NSE Nifty50 gained 289.15 points, ending the day at 24,328.50.

Vinod Nair, Head of Research at Geojit Investments, noted that the domestic market recovered from the losses incurred during the latter part of the previous week, which were influenced by rising border tensions. "Sustained buying from Foreign Institutional Investors (FIIs) and strong results from RIL also lifted investor sentiment," he added.

With the dollar weakening and inflation concerns in the US, FIIs may continue to turn their attention to the domestic market. However, Nair cautioned that investors should be mindful of potential risks in the near term, especially considering the market has yet to fully price in the impact of the Pahalgam terror attack retaliation. For new investors, a strategy of maintaining a 40% allocation in cash and debt, combined with a bottom-up approach on equity based on earnings results, could prove to be a prudent approach.