The Indian stock market saw strong buying interest in morning trade on Tuesday, March 24, with the benchmarks- the Sensex and the Nifty 50- rising more than X% each.
The Sensex jumped more than 1,500 points, or 2%, to open at 74,212.47, while the Nifty 50 rose by 400 points, or nearly 2%, to the day’s high of 22,900.
Investors earned ₹5 lakh crore within minutes as the cumulative market capitalisation of BSE-listed firms rose to nearly ₹420 lakh crore from ₹415 lakh crore in the previous session.
Why is the stock market rising?
Let’s take a look at 5 key factors behind the stock market rally.
1. Trump’s comments ease Middle East tensions
US President Donald Trump’s comments that Washington and Tehran are engaged in talks to finalise a comprehensive resolution of the eased one of the biggest concerns for global stock markets.
Trump said on 23 March that over the last two days, Iran and the US have had “very productive conversations regarding a complete and total resolution of hostilities in the Middle East”.
Meanwhile, Israeli media on March 23 that the US has set 9 April as a potential date to end the ongoing .
Trump’s softer tone on Iran and positive news flows indicating the end of the war could be near boosted market sentiment.
2. Positive global cues
The domestic market is mirroring trends in other major . Key indices in Japan, Korea, and China rose by up to 2% during the session following a solid more than 1% gain in the S&P 500 and Nasdaq overnight.
The rally in global markets was fuelled by Trump’s remarks that the US military will postpone planned strikes on Iran’s power and energy infrastructure by five days after discussions with Iranian officials.
(This is a developing story. Please check back for fresh updates.)
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