Sensex jumps 1,000 points: What's behind today's rally?
What's the story
India's stock market indices, the Sensex and Nifty, opened on a high note today. The surge comes as oil prices retreated from a six-month high amid ongoing talks to end the US-Iran war. At around 9:50am, the Sensex was up by 1,021 points or 1.37% at 75,481. Nifty also jumped 1.16% or 267.60 points to trade at 23,320.70.
Market drivers
Brent crude futures fell to $110 per barrel
Brent crude futures fell to $110 per barrel today from a six-month high of $118 on Friday.
This comes as Iranian and Qatari officials continue their talks for a deal to end the US-Israeli war on Iran.
Ponmudi R, CEO at stock broking platform Enrich Money, said these discussions have raised hopes of easing supply concerns and improving global energy market outlooks.
Corporate impact
Reliance Industries' stellar quarterly results boost investor sentiment
Reliance Industries, India's largest company by market capitalization, reported a 34% jump in quarterly net profit for the September quarter. The growth was driven by strong performance in its energy and digital services arm, Jio Platforms.
The stellar results have further boosted investor sentiment and contributed to the positive opening of the domestic equity markets today.
Market performance
Broader markets and sectoral indices perform well
The broader markets also opened in the green with Nifty Next 50 gaining 0.96%. Nifty 100 and Nifty 200 rose by 0.92% and 0.86%, respectively.
Sectoral indices traded largely higher in early deals with the Nifty Oil & Gas index emerging as a top performer, rising by an impressive 2.33%.
Other sectors such as PSU Bank, Auto, and Metal also witnessed gains indicating broad-based strength across the market today.