Why Is Share Market Rising Today? Indian equity benchmarks extended gains in late-morning trade on Thursday, led by strong buying in banking, pharma and metal stocks, even as sharp weakness in IT shares capped broader momentum. The BSE Sensex surged over 775 points, while the Nifty reclaimed the 23,650 mark.
At around 11:45 am, the BSE Sensex was trading 776.03 points, or 1.04 per cent, higher to touch an intraday high of 75,385.35. The NSE Nifty 50 rose 1.03 per cent to 23,653.15, close to the day’s high of 23,660.60.
Banking stocks emerged as the biggest support for the market rally. The Nifty Bank index jumped 1.18 per cent to 54,088.15, while Nifty Financial Services climbed 1.19 per cent. HDFC Bank gained nearly 3 per cent and was among the top
contributors to the Sensex rally. ICICI Bank, Kotak Mahindra Bank and SBI also traded firmly in the green.
Broader markets showed mixed trends. While the Nifty Midcap indices remained positive, smallcap stocks underperformed. The Nifty Smallcap 100 and Smallcap 250 indices slipped nearly 0.5 per cent each, indicating some profit-booking in high-beta counters despite the strong benchmark rally.
Meanwhile, India VIX slipped 2.61 per cent to 18.92, signalling easing volatility and improving investor confidence.
Key factors supporting rise in the domestic equity markets:
Bargain buying in beaten-down stocks: Investors continued to lap up stocks that had corrected sharply in recent sessions, helping benchmark indices recover further. The buying interest came after the Sensex and Nifty had witnessed nearly a 4 per cent decline over the previous four trading sessions amid concerns over rising crude oil prices and uncertainty triggered by Prime Minister Narendra Modi’s austerity call. The benchmarks had already shown signs of stabilisation on Wednesday by ending marginally higher.
Cooling market volatility: Investor sentiment improved as volatility eased further. India VIX, often referred to as the market’s fear gauge, declined 2.61 per cent to 18.92, indicating reduced nervousness among traders and improving risk appetite.
Positive global market signals: Strong cues from Asian and US markets also supported domestic equities. Most Asian indices traded in the green on Thursday, tracking gains in global technology stocks and upbeat corporate earnings. Japan’s Nikkei 225 rose 0.3 per cent after touching a fresh intraday record high, while South Korea’s Kospi, Hong Kong’s Hang Seng and Taiwan’s Taiex also advanced.
Wall Street had ended mostly higher overnight, led by technology shares. The S&P 500 gained 0.6 per cent to hit a new record closing high, while the Nasdaq Composite surged 1.2 per cent to another lifetime peak.
