Sensex jumps 800 points, Nifty reclaims 25,000 mark
What's the story
After three days of losses, the Indian stock market witnessed a major recovery on Friday.
The BSE Sensex surged by over 800 points or 1%, hitting an intraday high of 82,186.37.
Meanwhile, the Nifty50 index reclaimed the crucial psychological level of 25,000. It jumped 247.2 points or 0.99% to a high of 25,040.45.
The rally was led by heavyweights such as Bajaj Finserv and Mahindra & Mahindra, which rose up to 1.5% each in early trade.
Market growth
M-cap of BSE-listed firms rises by ₹3 lakh crore
The overall market capitalization of BSE-listed companies also witnessed a significant jump, rising by nearly ₹3 lakh crore to ₹446 lakh crore from the previous session's ₹443 lakh crore.
The rally was broad-based, with most sectors participating in the uptrend.
Alongside Bajaj Finserv and Mahindra & Mahindra, the other top gainers on the Sensex were UltraTech Cement, State Bank of India (SBI), Axis Bank, and Maruti Suzuki.
Global impact
How Asian markets are performing today
Asian markets opened on a subdued note after reports of Israel bombing Iranian nuclear facilities, triggering retaliatory missile and drone strikes from Iran.
The White House announced that President Donald Trump will decide within two weeks whether the US will support Israel militarily.
Despite these geopolitical tensions, investor sentiment in Indian markets remained positive as reflected by the overall market capitalization of BSE-listed companies.
Investor sentiment
Market rebound after 3 days of losses
The Indian stock market's rebound after three sessions of lackluster trade is largely driven by investors capitalizing on attractive valuations.
Analysts believe that the underlying economic fundamentals are strong, which has led to renewed buying interest and short covering in key sectors.
This is especially true for the banking sector, where stocks such as Axis Bank and SBI have been among the top gainers today.
Market drivers
Decline in crude oil prices boosts sentiment
A sharp decline in crude oil prices has also contributed to the market's positive performance.
Brent crude fell by over 2% to $76.92 per barrel, easing inflationary and fiscal concerns.
Foreign portfolio investors (FPIs) have been buying Indian equities amid a decline in the dollar index.
On June 19, FPIs bought Indian equities worth ₹934.62 crore in the cash segment.