20 Indian stocks that surged up to 40%—What’s behind the market’s sharp rally

What triggered India’s stock market rally on April 21, 2025?

India‘s stock market performance reflected renewed investor confidence, as both benchmark indices ended sharply higher amid broad-based gains across sectors. The BSE Sensex closed 855 points higher at 79,408.50, while the NSE Nifty 50 surged 274 points to settle at 24,125.55, marking a fresh all-time high. Sentiment was buoyed by strong Q4 earnings from key banks, easing inflation data, expectations of further rate cuts by the Reserve Bank of India, and targeted government policy incentives across infrastructure, telecom, and renewable energy.

This rally followed a recent global downturn triggered by renewed U.S. tariffs, but Indian equities have now not only recovered those losses but also outperformed other emerging markets. The sharp rebound indicates resilience in India’s economic fundamentals and continued interest from domestic and institutional investors alike.

Which stocks topped the Indian market and why?

The top-performing stock of the day was FUSI-RE, which surged 39.93% to ₹15.84. The stock opened at its day’s high and saw over 25 lakh shares change hands, indicating speculative momentum driven by low float and renewed trader interest.

Spandana Sphoorty Financial Limited rose 20% to ₹325.80, driven by strong financial performance in the microfinance space. With rural lending cycles improving and delinquencies moderating, the company is gaining from increased institutional allocation to financial inclusion themes.

Tech solutions provider Xelpmoc Design and Tech Limited climbed 20% to ₹107.12. The rally in this counter was linked to broader trends in generative AI consulting and digital transformation. As India scales up its AI investment initiatives, niche service firms have seen renewed investor interest.

CSL Finance Limited advanced 19.99% to ₹343.95. Analysts cited increased disbursal growth and improving asset quality in the non-banking finance space. CSL is strategically positioned within the MSME lending vertical, which is benefiting from post-pandemic capex recovery.

Texmo Pipes and Products Limited also gained 19.99% to ₹68.43, supported by optimism around Jal Jeevan Mission allocations and water infra rollouts across rural districts. Investors viewed the company’s vendor empanelment in several states as a forward-looking growth driver.

Liberty Shoes Limited jumped nearly 20% to ₹407.80. The company continues to benefit from strong domestic retail demand and export orders, particularly as India’s leather goods industry sees favourable global tailwinds amid China+1 sourcing trends.

Hindustan Motors gained 19.97% to ₹28.29. The rally was sparked by market speculation regarding a potential partnership for electric vehicle manufacturing. High volume action exceeding 1.84 crore shares pointed to strong retail participation.

Sambhaav Media Limited closed 19.97% higher at ₹7.03. This micro-cap media counter saw a sharp breakout following a low base consolidation, though no new business developments were reported. The move appeared technical in nature, attracting short-term traders.

How did specialty and healthcare stocks perform?

SMS Lifesciences India Limited recorded a gain of 15.91% to ₹1,663.60. With increased demand for APIs in regulated markets and a focus on high-margin therapeutic areas, the company remains in focus among pharma mid-caps.

BSHSL rose 15.80% to ₹152.80 amid demand for special-grade stainless steel from industrial and defence sectors. Analysts expect better quarterly numbers from the segment owing to government procurement acceleration.

Which mid-cap industrial stocks contributed to the rally?

GNA Axles Limited surged 14.45% to ₹375.00, driven by strong export orders, particularly from North America. The company is viewed as a key beneficiary of global drivetrain component demand and favourable logistics cost trends.

Muthoot Microfin Limited rose 13.88% to ₹160.20. The NBFC’s expanding rural reach and a drop in provisioning costs boosted investor sentiment. Its strategic positioning within the financial inclusion narrative is driving institutional interest.

KPI Green Energy Limited jumped 13.46% to ₹1,060.00 on expectations of policy-driven incentives for hybrid and solar energy projects. Renewables remain a key pillar of India’s energy transition strategy and KPI is well-aligned with the market demand.

What about infrastructure and defence-linked stocks?

Madhav Infra Projects Limited rose 12.82% to ₹47.80. The stock gained on reports of new project wins and steady execution metrics under national highway and affordable housing schemes. Broader infrastructure themes are gaining momentum ahead of the general elections.

DCX Systems Limited gained 12.77% to ₹279.00. With India’s defence electronics manufacturing push under the Atmanirbhar Bharat mission, DCX’s order book visibility and strategic tie-ups continue to fuel bullish sentiment.

India Pesticides Limited moved 11.19% higher to ₹160.00. A sharp uptick in global crop protection demand and new molecule launches have made the company a top pick in the agrochemical sector.

Did telecom and digital stocks sustain their momentum?

Yes. Vodafone Idea Limited surged 10.81% to ₹8.10 after the Government of India converted ₹36,950 crore of deferred spectrum dues into equity, increasing its stake to 48.99%. This move substantially strengthens Vi’s balance sheet, ahead of the 5G network rollout phase.

Just Dial Limited rallied 10.85% to ₹1,021.95. Post-integration with Reliance Retail’s B2B platform, the company’s new AI-driven discovery engine has boosted optimism around monetisation of local business leads. Volumes exceeded 1.23 crore shares, reflecting large investor action.

Which other stocks saw double-digit gains?

Arman Financial Services Limited rose 10.49% to ₹1,640.00. A combination of strong credit growth in Tier-II and Tier-III cities and improved asset quality metrics supported the rally. The company remains a high-beta play on rural consumption recovery.

Ambica Agarbathies & Aroma Industries Limited gained 10.44% to ₹30.89, driven by improved FMCG consumption patterns and brand-specific aromatherapy product penetration in domestic markets.

What broader economic and policy developments supported the rally?

The RBI’s dovish stance on monetary policy is a major tailwind for Indian equities. Having already cut policy rates by 50 basis points in March, the central bank is widely expected to reduce rates by an additional 100 basis points before the end of FY26 to stimulate credit growth. This outlook has particularly benefited NBFCs, housing finance firms, and telecom operators facing high debt servicing costs.

On the macro front, the Indian rupee remained stable, foreign institutional investors returned as net buyers, and GST collections for the month are projected to exceed ₹1.7 lakh crore. Meanwhile, government incentives across sectors—ranging from solar manufacturing and electric mobility to rail infrastructure—are driving structural demand in specific industry clusters.

While global stock markets are reeling from U.S. tariff escalations and expectations of delayed rate cuts by the U.S. Federal Reserve, India’s policy stability and consumption-led economic growth are helping the domestic markets decouple from global volatility. This positioning reinforces India’s role as a resilient emerging market destination for equity investments.

How should investors interpret the latest stock market trends?

Today’s stock exchange updates indicate renewed confidence in India’s growth story. With momentum gaining in telecom, financial inclusion, infrastructure, renewable energy, and digital platforms, the rally has strong sectoral underpinnings. However, analysts advise caution as select stocks may have run ahead of fundamentals, and earnings season volatility could reintroduce near-term choppiness.

Despite this, the current stock market trends and investment news and updates confirm India’s relative strength. With high-frequency indicators supporting the rally, today’s business news headlines in India are likely to remain bullish in the short term, while long-term investors are urged to stay focused on quality growth stocks.