Stock market today: The Indian stock market witnessed healthy buying interest in the morning deals on Thursday, 21 May, with the benchmarks- the Sensex and the Nifty 50- rising nearly 1% each.
The jumped over 600 points, or more than 0.80%, to an intraday high of 75,946, while the jumped 0.85% to the day’s high of 23,860.
The mid- and small-cap indices on the BSE also rose by 1% each, reflecting broad-based buying.
The overall market capitalisation of BSE-listed firms rose to ₹464 lakh crore by 9:25 am compared to ₹461 lakh crore in the previous session, making investors richer by about ₹3 lakh crore within the first 10 minutes of the session.
Why is the stock market rising?
Positive global cues amid hopes of a potential US-Iran deal, a recovery in the Indian rupee, a decline in crude oil prices, and easing US bond yields offered relief to the market.
jumped amid hopes that the US-Iran conflict will end soon. Korea’s Kospi surged 6%, boosted by easing geopolitical tensions and AI trade.
Globally, chip and AI-related stocks are witnessing strong traction. South Korea and Taiwan are global semiconductor hubs. Strong AI-driven earnings have attracted global investors to these markets this year.
Growing optimism over a peace deal to end the Middle East conflict is also influencing market sentiment.
According to Reuters, US President Donald Trump said on Wednesday that negotiations with Iran were in their final stages.
After held off strikes on Tehran, giving it a few more days, Iran said on Thursday it was reviewing Washington’s latest position on ending the war.
Crude oil benchmark Brent Crude dropped about 6% on Wednesday to an over one-week low, but saw some buying on Thursday. Still, it traded near the $105 per barrel level.
Meanwhile, the Indian rupee recovered 61 paise from its all-time closing low to 96.25 against the US dollar in early trade, as per PTI.
“The recent market movements indicate a buy on dips market construct. The buy on dips strategy has been working well. It appears that the sustained selling by FPIs has also stopped since they were buyers on a couple of days recently,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments, noted.
“Since valuations in India are fair and even attractive in certain pockets, FPIs may turn buyers, infusing some optimism in the market. A lot will depend on the crude price and stability in the rupee,” said Vijayakumar.
Rajesh Palviya, Head of Research, Axis Direct, highlighted that the Nifty 50 has been consolidating around the 23,600 zone over the last four sessions while attempting to decisively cross the 50-DMA supply zone on a closing basis.
“A sustained move above 23,800 could trigger strong short-covering momentum, potentially lifting the index towards the 24,000–24,200 range. On the downside, 23,400–23,300 remains a crucial support band, and unless breached, declines are likely to witness buying interest,” said Palviya.
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