Why Is Share Market Rising Today? Know Key Factors Behind Sensex, Nifty Rally On April 6

After declining significantly in the morning, the Indian stock markets staged a strong recovery in the afternoon trade today and turned green, with the BSE Sensex recovering 1,141 points from the day’s low, as of 1:40 pm. The domestic equities had hit the day’s low at around 11:15 am, with the NSE Nifty falling to 22,542.95 and the BSE Sensex declining to 72,728.66.

However, the benchmark indices staged a sharp recovery. As of 1:35 pm, the BSE Sensex traded 540 points or 0.70% higher at the day’s high of 73,887.63, and the NSE Nifty jumped 185 points or 0.68 per cent to trade at 22,900.55 in the afternoon trade.

Among 30 Sensex constituents, 27 were trading in the green, indicating a broad-based rally. Trent, Titan, Axis Bank, HDFC Bank, and Larsen

& Toubro were trading higher by up to 6.78 per cent. On the flip side, only three stocks were down — Reliance, Sun Pharma, and Mahindra & Mahindra declining by up to 3.79 per cent.

Key Factors Behind Market Rebound

Iran-US Ceasefire Expectations: Hopes of easing geopolitical tensions supported market sentiment after reports suggested progress toward a potential ceasefire between the US and Iran. According to a Reuters report citing sources, a framework to end hostilities has been shared with both sides and could take effect soon, potentially reopening the strategically important Strait of Hormuz.

The proposal, facilitated by Pakistan, outlines a two-step approach involving an immediate ceasefire followed by a broader agreement. “All elements need to be agreed today,” the source said, adding that the initial understanding would be structured as a memorandum of understanding finalised electronically through Pakistan, which is acting as the communication channel in the talks.

Rupee Surges 39 Paise: The domestic currency also provided support to equities. The rupee strengthened by 39 paise to 92.79 against the US dollar after the Reserve Bank of India tightened rules to curb speculative trading by capping banks’ net open positions at $100 million.

Forex traders, however, flagged that underlying pressures remain. They noted that the rupee continues to face headwinds from foreign capital outflows, a firm dollar, and elevated crude prices amid ongoing geopolitical uncertainty. During the session, the currency opened at 93.13 and strengthened to 92.85.

Strong Buying in Banking Stocks: Banking stocks emerged as key drivers of the rally, witnessing strong buying after recent corrections made valuations more attractive. Gains were led by PSU banks, with stocks such as Bank of Maharashtra, Bank of India and Bank of Baroda rising sharply.

The broader banking space also found support from improving credit growth trends. “Loan growth for private banks was steady and improved slightly for some public sector banks, reflecting tailwinds from higher working capital demand,” Jefferies said in a note.

Overall, easing geopolitical concerns, currency support and renewed interest in financial stocks combined to lift market sentiment.