Sensex gains 850 points: What's behind today's rally?
What's the story
The Indian stock markets have witnessed a massive rally for the third consecutive session, with the Sensex surging nearly 850 points to 76,917 and Nifty breaching the 23,800 mark. IT stocks led the rally with Infosys, HCL Technologies, TCS and Tech Mahindra gaining nearly 3% each. The sharp gains added around ₹5 lakh crore to the total market capitalization of all companies listed on BSE, taking it to ₹438 lakh crore.
Stock performance
Top gainers and losers
Other stocks that contributed to the rally included Zomato-parent Eternal, Mahindra & Mahindra (M&M), Trent, Adani Ports and IndiGo which gained up to 2%. However, HDFC Bank, ICICI Bank, Tata Steel and Bajaj Finance were among the top losers. The Nifty IT index was the top sectoral gainer on NSE with a rise of over 3%, followed by Nifty Media and Nifty Auto indices.
Market drivers
Factors contributing to market surge
The market surge can be attributed to several factors. First, oil prices have eased after a massive rally triggered by Iran's attack on ships in the Strait of Hormuz. Brent crude is trading at $102 per barrel while WTI crude is at $94.53 per barrel. Second, global markets have also risen with Wall Street ending higher as the US Federal Reserve started its two-day policy meeting.
Market trends
US bond yields decline for 2nd consecutive session
US bond yields on five to 30-year Treasuries have declined for the second consecutive session, while two-year yields have fallen for the third day. The benchmark 10-year yield fell 2.2 basis points to 4.198%. Meanwhile, value buying has also contributed to the market rally after a massive selloff in early March due to rising tensions between Iran and US-Israel.