At 11:14 AM, Nifty50 was trading at 24,187.85, up 345 points or 1.45%. BSE Sensex was at 77,938.80, up 1,091 points or 1.42%.The upbeat sentiment extended across the broader market as well, with the Nifty Smallcap 100 and Nifty Midcap 100 indices rising over 2 per cent each. Sectorally, all indices on the National Stock Exchange opened higher, with the Nifty PSU Bank index leading the gains with an increase of around 3 per cent.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Hopes of resumption of US-Iran talks, Israel-Lebanon talks and crash in Brent crude by $10 dollars in two days augur well for the market in the near-term. The resilience of markets worldwide, despite the IMF’s warning about a global recession if the conflict prolongs, is an indication that the market is discounting an end to the conflict soon.In the extremely volatile scenario through which markets have been moving, it is important that investors remain invested. The benefit from sharp rebounds in the market will be lost to investors who sell out and keep away from the market.In the near-term large caps are likely to stage a smart comeback, but may again face headwinds when FIIs resume selling. The excellent performance of South Korean and Taiwanese markets and the significant market momentum there might nudge FPIs to sell again in India. Sustained resilience in the near-term is likely to be in mid and small caps which will not come under the pressure of FPI selling.”The rally significantly boosted investor wealth, with the total market capitalisation of companies listed on the Bombay Stock Exchange rising by over Rs 9 lakh crore to nearly Rs 458 lakh crore in early trade, according to an ET report.
Why is stock market rising today? Top reasons
US-Iran peace talks hopesOne of the key triggers behind the stock market rally was renewed hope of diplomatic engagement between Washington and Tehran. Officials in Pakistan indicated that Islamabad has proposed a second round of talks between the United States and Iran. Earlier, US Vice President JD Vance said that negotiations with Iran “did make some progress,” while US President Donald Trump remarked that “we’ve been called by the other side” and “they want to work a deal.”Trump also signalled that discussions could resume soon, saying talks “could be happening over next two days” in Pakistan, according to Reuters citing the New York Post. Oil prices remain below $100 per barrelOil futures showed a mild uptick on Wednesday morning after a sharp drop overnight, but continued to stay well below the key $100 per barrel level. Brent crude was trading close to $95 per barrel, while WTI crude hovered around $91 per barrel.Prices had earlier crossed the $100 mark in March following the shutdown of the Strait of Hormuz, reaching that level for the first time since the Russian invasion of Ukraine. Since then, they had largely remained above this threshold for much of the period.Rupee edges higher The Indian rupee opened slightly stronger on Wednesday, appreciating by 0.2% to 93.17 against the US Dollar, compared to its previous close of 93.2750. Jateen Trivedi, Vice President and Research Analyst for commodities and currencies at LKP Securities, said the rupee is expected to move within a range of 92.75 to 94.00 during the session.Bond yields decline US Treasury yields moved lower as improving sentiment encouraged investors to take on more risk. The yield on benchmark 10-year notes fell to 4.248%, while the 30-year bond yield declined to 4.857%. The 2-year yield, which typically reflects expectations around interest rate decisions by the Federal Reserve, eased to 3.749%.Global markets advance Equity markets worldwide moved higher amid optimism over potential diplomatic progress. Japan’s Nikkei 225 rose more than 1%, nearing its late-February peak of 59,332. South Korea’s Kospi surged nearly 3%, while Hong Kong’s Hang Seng Index gained over 1%. China’s Shanghai Composite also recorded modest gains.In the previous session, both US and European markets had closed firmly higher. The tech-heavy Nasdaq Composite advanced nearly 2%, and the S&P 500 rose more than 1%. In Europe, Germany’s DAX and France’s CAC 40 each gained over 1%, while the UK’s FTSE 100 ended with modest gains.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
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