The Indian stock market witnessed strong buying in morning deals on Wednesday, April 1, with the Sensex and the Nifty 50 rising more than 2% each, mirroring the global trend.
The Sensex jumped 1,900 points, or 2.64%, to an intraday high of 73,847, while the NSE counterpart Nifty 50 rose by more than 550 points, or 2.5%, to the day’s high of 22,902.
Investors earned ₹10 lakh crore within minutes as the overall market capitalisation of BSE-listed firms rose to ₹422 lakh crore from ₹412 lakh crore in the previous session.
Why is the Indian stock market rising?
Let’s take a look at 5 key factors behind the rise in the Indian stock market today:
1. Trump signals the US-Iran war nearing its end
Markets are cheering emerging signs of a potential end to the West Asian conflict.
According to reports, US President has said Washington could end its military attacks on Iran within two to three weeks. Tehran, the US President said, did not have to make a deal as a prerequisite for the war to end.
The , which began on 28 February, has driven crude oil prices to multi-year highs, raising concerns about its impact on global growth and inflation dynamics and dealing a blow to market sentiment.
2. Rupee strengthens
An uptick in the Indian rupee also influenced market sentiment. The domestic currency rose 15 paise to 94.70 against the US dollar in early trade on Wednesday. During the previous session, the rupee hit a record low of 95.23. This was the first time the currency breached the 95 mark.
Year-to-date, the Indian rupee is down 5% due to the US-Iran war, surging crude oil prices, and massive foreign capital outflow.
Meanwhile, according to a Mint report, the (RBI) is taking measures to defend the rupee. It is expanding its scrutiny to corporate treasury positions in the foreign exchange market to assess large arbitrage trades after the central bank’s move on 27 March to cap banks’ net open positions in the domestic market at $100 million at the end of each day
(This is a developing story. Please check back for fresh updates.)
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