Why Is Share Market Rising Today? Frontline indices—the Sensex and Nifty 50—surged sharply in early trade on Wednesday, April 15, as strong buying interest lifted most sectors.
The Sensex jumped over 1,400
points, or nearly 2%, to an intraday high of 78,270, while the Nifty 50 climbed more than 400 points to touch 24,281. Broader markets outperformed, with the Nifty Midcap 100 and Smallcap 100 indices rising over 2% each.
Investor wealth also swelled significantly, with the total market capitalisation of BSE-listed companies increasing by ₹9 lakh crore to ₹458 lakh crore from ₹449 lakh crore in the previous session.
What’s Driving the Rally?
1. Fresh Hopes of US-Iran Talks
Sentiment improved after reports indicated that the US and Iran may soon resume negotiations to resolve their conflict.
According to reports, US President Donald Trump said discussions could restart in Pakistan within the next two days. The possibility of renewed diplomatic engagement helped calm nerves after earlier talks failed to deliver a breakthrough.
2. Sharp Correction in Crude Oil Prices
Falling oil prices provided a strong tailwind for equities.
Brent crude slipped below the $95 per barrel mark, with futures down about 0.4% to $94 after a nearly 5% drop in the previous session. US WTI crude also declined over 1% to $90, extending its recent sharp fall.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the sharp correction in crude alongside hopes of renewed talks is supporting markets, which appear to be pricing in a potential resolution to the conflict despite global recession concerns flagged by the IMF.
3. Strong Global Market Cues
Global equities rallied, boosting domestic sentiment.
MSCI’s Asia-Pacific index (ex-Japan) rose 1.5% to a six-week high. Japan’s Nikkei gained 1%, while South Korea’s Kospi surged 3%.
On Wall Street, the Nasdaq climbed 2% and the S&P 500 advanced 1.2%, nearing record highs.
4. Rupee Strengthens
The Indian rupee also lent support to equities, rising 12 paise to 93.23 against the US dollar in early trade, aided by easing geopolitical tensions and softer crude prices.
5. Technical Breakout in Play
Technical factors also contributed to the upside.
According to Shrikant Chouhan of Kotak Securities, the Nifty 50 has been rebounding after recent declines, with 24,100 acting as a key resistance level. A sustained move above this mark could push the index towards 24,300, and potentially 24,500 if momentum holds.
