Sensex gains over 900 points: What's behind today's rally?
What's the story
The Indian equity benchmarks, Sensex and Nifty, have staged a comeback after yesterday's major slump. The recovery comes as oil prices have eased, providing some relief to the global markets amid the ongoing conflict in West Asia. At around 10:30 am today, Sensex was up by over 930 points to 75,137 while Nifty was up to 23,287 after gaining over 280 points.
Market influences
Brent crude oil has moderated to $107 per barrel
Brent crude oil has moderated to $107 per barrel, after peaking at $119.13 a barrel in the previous session due to attacks on energy infrastructure in West Asia. The easing prices have provided some relief to global markets amid the ongoing conflict. Further, Israeli Prime Minister Netanyahu's recent comments supporting US efforts to reopen the Strait and not targeting Iranian energy infrastructure again have also contributed positively to investor sentiment.
Market recovery
Value buying and bounce expected from 23,000-mark
On Thursday, the Indian equity benchmarks had witnessed their worst session since June 2024, with a slump of over 3%. However, this has led to value buying today. Analysts also expected a bounce from the psychologically important 23,000-mark on Nifty. This combination of factors has contributed to today's market rally.