Stock market today: A fresh spell of buying engulfed the Indian stock market on Wednesday, April 15, driving the benchmark indices higher by more than 1.5% each.
The Sensex surged 1,264 points, or 1.64%, to close at 78,111.24, while the Nifty 50 jumped 389 points, or 1.63%, to settle at 24,231.30. The Nifty Midcap 100 and Smallcap 100 indices rose more than 2% each.
Among the sectoral indices, Nifty Consumer Durables, IT, Realty, Media, and Oil and Gas jumped 2-3%. Nifty Bank rose 1.25%, while the Financial Services index jumped 1.53%.
Investors’ wealth increased by ₹9 lakh crore in a single day as the cumulative market capitalisation of the firms listed on the BSE rose to more than ₹458 lakh crore from ₹449 lakh crore in the previous session.
What drove the Indian stock market higher?
Let’s take a look at key factors behind the rise in the Indian stock market:
1. US-Iran talks to resume
The market cheered the reports, suggesting the US and Iran could engage in talks shortly to find a permanent solution to their conflict.
As Reuters reported, US President Donald Trump said talks with Iran could resume in Pakistan over the next two days.
Signs of diplomatic engagement calmed market nerves after the first round of talks over the last weekend between the parties failed to fetch a desired outcome.
2. Crude oil prices slump further
Brent crude declined further to trade near $95 per barrel on Wednesday, boosting market sentiment.
Brent crude futures fell nearly 0.40% to $94 a barrel during the session, after declining almost 5% in the previous session. US West Texas Intermediate crude dropped more than 1% to $90, following an 8% fall in the previous session after President Trump said that the talks to end the US-Iran war could resume in Pakistan over the next two days.
“Hopes of a resumption of US-Iran talks and Israel-Lebanon talks, and a $10 drop in Brent crude in two days, augur well for the market in the near term. The resilience of markets worldwide, despite the IMF’s warning about a global recession if the conflict prolongs, is an indication that the market is discounting an end to the conflict soon,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments, noted.
3. Positive global cues
Major markets globally jumped higher as the prospect of the US-Iran talks resuming shortly lifted sentiment.
Most markets in Asia ended in the green, while in Europe, FTSE and DAX traded higher when the Sensex ended.
Overnight, the US stock market clocked strong gains, with the Nasdaq climbing 2% and the S&P 500 rising 1.2%, nearing its record closing high.
4. Rupee improves
The rupee’s rise also influenced market sentiment. The Indian rupee rose by 12 paise to 93.23 per dollar in early trade on Wednesday amid easing geopolitical tensions and the fall in crude oil prices. The domestic currency, however, ended almost flat.
5. Technical factor
Of late, the market has been rebounding after a fall, with 24,100 acting as a resistance.
According to Shrikant Chouhan, the head of equity research at Kotak Securities, if the Nifty 50 rises above 24,100, it could move towards 24,300, and if it closes above this level, further upside momentum could continue, taking it to 24,500.
Ajit Mishra, SVP of Research at Religare Broking, highlighted that the Nifty 50 has once again reclaimed the 24,000 mark, indicating strengthening momentum in the ongoing recovery phase.
“The index is now expected to inch toward the 24,350–24,600 zone, with a key hurdle placed around 24,800, coinciding with the 200 DEMA. On the downside, support has shifted higher to the 23,900–23,600 range,” said Mishra.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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