Indian stock markets continued their robust upward trajectory on Thursday, April 17, capping off a fourth consecutive session of gains with significant advances across the board.

Buoyed by strong buying interest, particularly in financial stocks, and supported by positive global cues, the benchmark indices closed firmly in positive territory, reaching notable milestones.

The bullish sentiment was palpable throughout the trading day. At the closing bell, the BSE Sensex stood tall at 78,553.20, having surged an impressive 1,508.91 points, or 1.96%.

The broader NSE Nifty 50 index mirrored this strength, climbing 414.45 points, or 1.77%, to settle comfortably at 23,851.65.

Market breadth was decidedly positive, with approximately 2,340 shares advancing compared to 1,468 decliners on the BSE, while 149 shares remained unchanged.

This broad participation added heft to the rally, pushing the total market capitalization of BSE-listed firms up by a substantial Rs 4.33 lakh crore to Rs 419.33 lakh crore, according to media reports.

Financials and banks lead the charge

Spearheading the day’s advance were banking and financial stocks.

The Bank Nifty index climbed nearly 2.2%, propelled by strong buying in heavyweight constituents like HDFC Bank and ICICI Bank.

Significantly, these gains materialized just ahead of the banks’ scheduled release of their fourth-quarter earnings on April 19.

The collective contribution of key banking players – HDFC Bank, ICICI Bank, Axis Bank, SBI, and Kotak Mahindra Bank – accounted for a massive 730 points of the Sensex’s overall 1,500-point surge, highlighting their pivotal role in the rally.

Adding significant fuel to the fire was the sustained buying interest from Foreign Institutional Investors (FIIs).

Data showed FIIs remained net buyers for the second day running, snapping up Indian equities worth Rs 3,936 crore on Wednesday.

This brought their total net purchases over just two days to more than Rs 10,000 crore, signaling robust confidence in the Indian market outlook.

Supportive global backdrop and trade talk optimism

Positive cues also emanated from the international stage.

Asian markets generally rose as investors assessed ongoing trade negotiations between the United States and Japan.

While overarching uncertainty regarding President Donald Trump’s tariff policies kept sentiment somewhat fragile, signs of progress offered support.

Japan’s Nikkei index gained 1.35% as talks commenced, with President Trump unexpectedly joining the discussions and declaring “big progress” alongside Japanese negotiator Ryosei Akazawa.

Weaker dollar and stable oil lend support

A depreciating US dollar further bolstered sentiment towards emerging markets like India, as a weaker greenback typically encourages foreign capital inflows and supports the domestic currency.

The dollar index stood near 99.57 on Thursday, down significantly from levels around 109.88 seen in early February, lifting risk appetite.

Furthermore, relative stability in global oil markets provided comfort. With Brent crude hovering around $66.46 a barrel and US WTI near $63.2, concerns about import-driven inflation eased somewhat.

Lower crude prices are generally beneficial for India, a major oil importer, helping alleviate pressure on its current account deficit and inflation.

The continued positive sentiment stemming from President Trump’s earlier decision to postpone additional tariffs on many countries, including India, until July 9, also contributed to the supportive market environment.

Sectoral strength and stock movers

The bullishness was widespread across sectors, with all major indices ending in the green.

Telecom, PSU Banks, Oil & Gas, Pharma, Auto, Energy, and Private Banks posted gains ranging from 1% to 2%. Midcap and Smallcap indices also participated, each adding 0.5%.

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Shares in J Sainsbury PLC surged on Thursday, closing up 4% at 257.8p, making it the top performer on the FTSE 100 index.

The rally came after the British supermarket giant reported its full-year financial results, which showed a 7.2% rise in retail underlying operating profit to £1.04 billion for the 2024/25 fiscal year.

The result marks the first time Sainsbury’s has posted over £1 billion in annual operating profits, excluding one-off items.

The rebound in share price also marks a full recovery from last month’s slump, when Asda’s announcement of price cuts triggered a sell-off across the UK grocery sector.

Sainsbury’s stock, which had fallen as low as 223p during the broader market sell-off tied to political uncertainty in the United States, is now trading above the levels seen before Asda’s move.

The results appear to validate Sainsbury’s focus on core food retail operations, which performed well amid a difficult trading environment marked by rising costs and heightened price sensitivity among consumers.

Profit milestone reached, but outlook remains conservative

While Sainsbury’s reported a 38.6% jump in pre-tax profits to £384 million, this figure was supported by a strong performance in its food business and adjusted to exclude one-time restructuring costs, including the closure of in-store cafes and hot food counters.

Chief executive Simon Roberts credited the company’s progress to consistent investment in price, product quality, and customer service.

“We’ve delivered a strong set of results by staying true to our strategy of giving customers what they want: great value, quality and service,” he said.

Despite the record-breaking performance, the company struck a cautious note for the year ahead.

It forecast retail underlying operating profit of around £1 billion for the 2025/26 financial year, below analysts’ expectations of £1.08 billion.

The guidance reflects concerns about persistent inflation, higher labour and supply chain costs, and the intensifying competition in the UK supermarket sector.

Analysts find guidance “subdued” but foresee room for upside if market stabilises

While the market welcomed the past year’s strong performance, analysts offered mixed views on the outlook.

Shore Capital analysts Clive Black and Darren Shirley noted that Sainsbury’s is in a solid operational position and plans to increase market share in food retailing.

However, they acknowledged that the subdued guidance reflects a prudent approach amid a shifting competitive landscape.

“The guidance shows determination to defend value credentials following Asda’s aggressive strategy,” they wrote in a note to clients.

“It may be conservative, but leaves room for upside if market dynamics stabilise.”

RBC Capital Markets analysts Manjari Dhar and Richard Chamberlain said the lower-than-expected guidance was disappointing given Sainsbury’s strong prior performance and recent commentary from Tesco that signalled higher competitiveness across the board.

“With the sector about to be embroiled in a trade war of its own, Sainsbury is preparing for the fight with some added momentum which should provide some protection,” said Richard Hunter, head of markets at Interactive Investor.

Outlook to help Sainsbury’s manoeuvre stiff competition

The UK’s supermarket sector has entered a phase of heightened competition, with price cuts emerging as a key weapon in the battle for market share.

Asda’s decision to slash prices sent a ripple effect across the industry, forcing peers like Sainsbury’s, Tesco, and Marks & Spencer to react.

Analysts believe the outlook from Sainsbury’s is deliberately cautious, allowing room to manoeuvre should conditions worsen.

Hargreaves Lansdown’s Aarin Chiekrie described the guidance as “conservative,” roughly 8% below consensus, and said it mirrors Tesco’s approach in offering flexibility during a volatile period.

“But shy of an all-out price war, there could be room for positive surprises as the year progresses,” he added.

Despite near-term uncertainty, investor sentiment towards Sainsbury’s remains relatively positive.

According to LSEG data, eight out of thirteen analysts rate the stock a “buy” or “higher,” while the median price target stands at 300p—implying further upside potential.

As Sainsbury’s prepares for a potentially difficult year ahead, it appears to be entering the fray with both momentum and caution.

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Eli Lilly’s experimental obesity pill, orforglipron, met its main goals in a closely watched late-stage trial, boosting the company’s standing in the fast-growing market for weight loss and diabetes treatments.

The results, announced Thursday, show the pill could offer a compelling, needle-free alternative to popular injections, potentially reshaping how millions of people manage chronic conditions.

Shares of Eli Lilly rose as much as 11% in premarket trading on Thursday as investors welcomed the results, which put the company a step ahead of rivals such as Novo Nordisk in developing an oral version of the lucrative GLP-1 class of drugs.

The US pharmaceutical giant reported that orforglipron helped patients with Type 2 diabetes achieve both weight loss and improved blood sugar control.

The trial, one of seven late-stage studies underway, also found the pill’s side effect profile to be largely manageable and in line with what is observed in injectable drugs already on the market.

A promising alternative to injections

At its highest dose, orforglipron led to an average weight loss of 7.9% — roughly 16 pounds — over 40 weeks.

Notably, patients had not plateaued in their weight loss by the end of the study, suggesting that longer treatment may yield further results.

This development is significant for patients seeking a more convenient alternative to injectables like Wegovy and Ozempic.

Pills are easier to manufacture and distribute at scale, which could help alleviate the persistent supply shortages that have plagued the market for injectable GLP-1 drugs.

CEO David Ricks emphasized the potential impact in a company statement:

We are pleased to see that our latest incretin medicine meets our expectations for safety and tolerability, glucose control, and weight loss. We look forward to additional data readouts later this year.”

Safety is in line with expectations

Side effects were mostly mild to moderate, with gastrointestinal symptoms such as nausea, vomiting, and diarrhea reported.

Around 8% of patients on the highest dose discontinued treatment due to side effects, which analysts say is within an acceptable range.

In comparison, injectable versions of the drug class tend to have similar or slightly lower discontinuation rates, though they are administered weekly rather than daily.

Analysts had expected discontinuation rates around 9%, indicating that the results came in close to forecast.

TD Cowen and other investment firms had anticipated that side effects could be marginally worse with a daily oral pill.

Mixed results on diabetes metric

Despite positive signs, orforglipron fell short of some analyst expectations when it came to lowering hemoglobin A1c, a key diabetes marker.

The pill reduced blood sugar levels by 1.3% to 1.6% across doses after 40 weeks, from a starting level of 8%.

This compares with reductions as high as 2.1% seen in some patients using Novo Nordisk’s injection Ozempic.

The result remains clinically meaningful, but the gap could influence prescribing patterns if physicians view injections as more effective for glucose control.

Still, the pill’s ease of use may be enough to offset that in patients prioritizing convenience.

Looking ahead to regulatory filings

Eli Lilly plans to file for regulatory approval for orforglipron in obesity by the end of 2025, with a diabetes filing expected in 2026.

The company is currently conducting five trials in diabetes and two in obesity, with more data expected later this year.

The pill is not a peptide-based drug, meaning it is absorbed more easily by the body and doesn’t require food restrictions, unlike Novo Nordisk’s diabetes pill Rybelsus.

This could make it more appealing to a broader patient population.

Analysts forecast the GLP-1 market could exceed $150 billion annually by the early 2030s, with oral drugs accounting for up to $50 billion.

Eli Lilly, already a leader with injectable drugs like Mounjaro, may solidify its dominance if orforglipron gains approval.

With its lead over competitors including AstraZeneca, Roche, Structure Therapeutics, and Viking Therapeutics, Eli Lilly is positioning itself to be the first to offer a widely available oral GLP-1 therapy — and reshape the landscape of chronic disease management.

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The S&P 500 and Nasdaq Composite opened higher on Thursday, the final trading day of the week.

The Dow Jones Industrial Average, however, posted a steep decline, weighed down by a significant drop in UnitedHealth.

UnitedHealth is the largest weighted component in the Dow Jones Industrial Average.

The S&P 500 added 0.4%, while the Nasdaq gained 0.4%.

The Dow fell 463 points, or 1.2%, as UnitedHealth tumbled 17% after reporting earnings below expectations and cutting guidance.

The company has revised its 2025 adjusted profit per share forecast to a range of $26 to $26.50, down from the previous outlook of $29.50 to $30 per share.

Analysts had been expecting a profit of $29.73 per share for 2025, according to data from LSEG.

Tech giant Netflix is set to report first-quarter earnings after the bell on Thursday 

The major indices are on track for a losing week, with the market closed on Friday in observance of Good Friday.

The Dow and S&P 500 have each declined more than 2% and 1.2%, respectively, while the Nasdaq has fallen around 2% for the week.

Wednesday’s steep decline

Thursday’s moves followed a sharp sell-off on Wednesday, led by heavy losses in technology stocks.

The Dow Jones Industrial Average fell nearly 700 points, while the Nasdaq Composite dropped more than 3%.

Nvidia led the decline with a nearly 7% slide after disclosing a $5.5 billion quarterly charge related to US export restrictions on its H20 GPUs to China and other markets.

Markets were also pressured by comments from Federal Reserve Chair Jerome Powell, who warned that Trump’s tariffs could push inflation higher in the short term and are “likely to move us further away from our goals.”

Powell noted the Fed could face a “challenging scenario” in managing its dual mandate of stable prices and maximum employment.

Trump and Powell spar again

President Donald Trump on Thursday renewed his call for the Federal Reserve to cut interest rates and suggested the possible removal of Chair Jerome Powell.

The remarks followed Powell’s speech at the Economic Club of Chicago, where he said the Fed faced a difficult balancing act as tariffs imposed by the administration complicated decisions on controlling inflation and supporting economic growth.

“If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close,” Powell said, contributing to a sharp market sell-off on Wednesday.

Trump has repeatedly criticized Powell’s policy decisions.

Earlier this month, two days after the administration’s “Liberation Day” tariff announcement, Trump wrote it would be “a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly.”

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Hertz Global Holdings (NASDAQ: HTZ) is up nearly 50% in premarket on Thursday after billionaire investor Bill Ackman announced a sizable stake in the car rental company.

Ackman had built a 4.1% stake in Hertz last year. Now, he has increased that stake to 19.8%, as per a source that spoke with CNBC.

Ackman’s Pershing Square is now the second largest shareholder of HTZ, shares of which, including today’s gains, are now up more than 100% versus their year-to-date low.

Hertz’s financial strength doesn’t inspire confidence

Bill Ackman’s sizable stake in Hertz stock reflects his confidence in what the future holds for this car rental company.

However, there’s plenty that suggests HTZ remains a high-risk investment.

For starters, the Nasdaq-listed firm lost a total of $2.9 billion in 2024.

So, Hertz’s financial health remains shaky, and despite Ackman’s confidence, these losses indicate deeper structural issues.

Additionally, Hertz made a big bet on EVs, particularly Teslas, but that move backfired.

The firm faced significant depreciation costs and had to sell off a large portion of its electric vehicle fleet at a loss.

And it’s not like Hertz shares currently pay a dividend to make it any easier to look past the signs of weakness in its financials.

Hertz continues to be a highly volatile stock

Investors should remain cautious on Hertz stock despite Ackman’s announcement, as it has a history of extreme stock price swings, dating back to its meme stock surge after bankruptcy in 2020.

While the billionaire’s investment has triggered a short-term rally in HTZ shares, it’s worth noting that the car rental company remains highly volatile and, therefore, risky to own, especially now that fears of a recession ahead have been brewing again.

Finally, the car rental industry is highly competitive, with companies like Enterprise and Avis maintaining strong market positions.

Hertz’s financial instability and failed EV strategy put it at an even bigger disadvantage compared to rivals.

Wall Street disagrees with Ackman on HTZ shares

Bill Ackman’s increased stake may signal optimism, but the underlying financial struggles, failed EV strategy, and competitive pressures suggest Hertz is a high-risk investment for 2025.

In fact, Wall Street analysts disagree with Ackman on Hertz stock as well.

The consensus rating on HTZ shares currently sits at “underweight” with the mean target of $3.31, indicating potential downside of more than 50% from current levels.

What’s also worth mentioning is that Ackman, while a globally revered investor, has made bets in the past that didn’t quite pan out.

For example, he loaded up on nearly 20 million shares of Valeant Pharmaceuticals at $171 in 2015.

But the company soon became embroiled in accounting scandals and congressional investigations over its drug pricing practices, causing its stock to plummet to just $27, leading to about a $2.0 billion loss for the founder and chief executive of Pershing Square.  

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