The Indian stock market benchmarks- the Sensex and the Nifty 50- extended gains for the second consecutive session on Wednesday, March 25, a day after clocking strong gains of nearly 2% each.
The Sensex jumped over 700 points, or more than 1%, to 74,841, while the Nifty 50 rose by 250 points, or 1%, to 23,158.
Investors’ wealth rose by ₹6 lakh crore within minutes as the overall market capitalisation of companies listed on the BSE rose to ₹429 lakh crore from about ₹423 lakh crore in the previous session.
Why is the stock market rising today?
Let’s take a look at five key factors behind the rally in the stock market:
1. Indication of the Middle East conflict likely to end soon
Reports of positive developments between the are cheering the market.
US President claimed Washington DC and Tehran have “major points of agreement” and ordered a five-day suspension of US strikes on Iranian energy infrastructure, raising hopes of a diplomatic breakthrough.
2. Positive global cues underpin sentiment
Positive global cues boosted the overall market sentiment. Almost all major were in the green in early trade. Japan’s Nikkei and Korea’s Kospi jumped up to 3%, while China’s Shanghai Composite index climbed by 1% amid reports of peace talks between the US and Iran.
3. Crude oil prices fall below $100
Brent Crude prices crashed by more than 5% to fall below the $100-per-barrel mark following reports of the US diplomatic push to resolve the Middle East conflict.
(This is a developing story. Please check back for fresh updates.)
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