Sensex gains over 900 points: What's driving today's rally?
What's the story
The benchmark equity indices, Sensex and Nifty, continued their winning streak on Tuesday. The upward trend was supported by a sharp correction in crude oil prices and foreign fund inflows. At around noon today, the Sensex had gained 932.84 points or 1.23% to reach 76,625.62 while the broader Nifty rose to 23,691.05 with a gain of 250.25 points or 1.07%.
Market overview
Broader market also remained strong
Most major Nifty sectoral indices were in the green, except for Nifty Pharma.
The broader market also remained strong with Nifty Smallcap 100 and Nifty Midcap 100 gaining by 0.4% and 0.7%, respectively.
This broad-based rally indicates a positive sentiment across different sectors of the Indian stock market.
Market drivers
Crude oil prices, foreign fund inflows
Brent crude remained flat at around $105 per barrel after a 7% drop in the previous session.
Talks between Iran and Qatari mediators have raised hopes of an end to the US-Israeli war with Iran.
Foreign portfolio investors (FPIs) were also net buyers in Indian markets on Monday, pumping in ₹3,114.68 crore.
Market support
Rupee appreciated against US dollar
The continued momentum in corporate earnings also supported market sentiment. Several stocks gained after companies reported their September-quarter results.
The rupee also appreciated 12 paise to 94.72 against the US dollar, aided by falling crude oil prices and foreign fund inflows into domestic equities.