Stock market today: Frontline indices, the Sensex and the Nifty 50, jumped sharply as a fresh spell of buying engulfed most sectors in early deals on Wednesday, April 15.
The surged over 1,400 points, or nearly 2%, to an intraday high of 78,270, while the jumped more than 400 points, or almost 2%, to the day’s high of 24,281. The Nifty Midcap 100 and Smallcap 100 indices jumped more than 2% each.
Investors’ wealth jumped by ₹9 lakh crore as the cumulative market capitalisation of the firms listed on the BSE rose to ₹458 lakh crore from ₹449 lakh crore in the previous session.
Why is the Indian stock market rising?
Let’s take a look at key factors behind the rise in the Indian stock market:
1. US-Iran talks to resume
The market cheered the reports, suggesting the could engage in talks shortly to find a permanent solution to their conflict.
As Reuters reported, US President Donald Trump said talks with Iran could resume in Pakistan over the next two days.
Signs of diplomatic engagement calmed market nerves after the first round of talks over the last weekend between the parties failed to fetch a desired outcome.
2. Crude oil prices slump further
Brent crude declined further to trade below the $95 per barrel level, boosting market sentiment.
futures fell nearly 0.40% to $94 a barrel, after declining almost 5% in the previous session. US West Texas Intermediate crude dropped more than 1% to $90, following an 8% fall in the previous session after President Trump said that the talks to end the US-Iran war could resume in Pakistan over the next two days.
“Hopes of resumption of US-Iran talks, Israel-Lebanon talks and crash in Brent crude by $10 dollars in two days augur well for the market in the near-term. The resilience of markets worldwide, despite the IMF’s warning about a global recession if the conflict prolongs, is an indication that the market is discounting an end to the conflict soon,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments, noted.
3. Positive global cues
Major globally jumped higher as the prospect of the US-Iran talks resuming shortly lifted sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.5% to the highest level in six weeks. Japan’s Nikkei also rallied 1%, while Korea’s Kospi jumped 3%.
Overnight, the US stock market clocked strong gains, with the Nasdaq climbing 2% and the S&P 500 rising 1.2%, nearing its record closing high.
4. Rupee improves
The rupee’s rise also influenced market sentiment. The Indian rupee rose by 12 paise to 93.23 per dollar in early trade on Wednesday amid easing geopolitical tensions and the fall in crude oil prices.
5. Technical factor
Of late, the market has been rebounding after a fall, with 24,100 acting as a resistance.
According to Shrikant Chouhan, the head of equity research at Kotak Securities, if the Nifty 50 rises above 24,100, it could move towards 24,300, and if it closes above this level, further upside momentum could continue, taking it to 24,500.
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