Sensex surges almost 1,660 points: Here we decode why
What's the story
The Indian stock market, led by the Sensex and Nifty, continued its upward trend for the second consecutive session today. The Sensex jumped over 1,658.48 points or more than 2.24% to 75,726.93. Meanwhile, Nifty 50 also witnessed a surge of around 518.95 points or over 2.26% to 23,431.35. This rally has added nearly ₹6 lakh crore to investors' wealth in minutes.
Ggrowth
BSE market capitalization surges by ₹6L crore
The overall market capitalization of companies listed on the Bombay Stock Exchange (BSE) also witnessed a major jump. It rose from around ₹423 lakh crore in the last session to nearly ₹429 lakh crore in this one. This increase is a direct indication of the positive response from investors toward the current market trends and conditions.
Diplomatic developments
Break in US-Iran conflict
The stock market rally is largely driven by positive news from the US-Iran conflict. US President Donald Trump has said that Washington DC and Tehran have "major points of agreement." He has also called for a five-day halt to American bombings on Iranian energy infrastructure. These developments have raised hopes of a diplomatic breakthrough, boosting investor sentiment in the Indian stock market.
Market factors
Positive global cues
The Indian stock market rally is also supported by positive global cues. Most major Asian markets were in the green during early trade, with Japan's Nikkei and Korea's Kospi rising up to 3% each. China's Shanghai Composite index also jumped by 1% amid reports of peace talks between the US and Iran. Further, brent crude prices fell below $100 per barrel after reports of a US diplomatic push to resolve the Middle East conflict.