The Indian stock market witnessed a fresh wave of healthy buying across segments on Friday, May 2, driving the benchmark Sensex up by over 900 points and helping the Nifty 50 reclaim the 24,550 mark.
The Sensex opened at 80,300 against its previous close of 80,242 and jumped over 900 points to hit an intraday high of 81,159. The Nifty 50, on the other hand, started the day at 24,312 against its previous close of 24,334 and touched an intraday high of 24,589, jumping more than 250 points, or 1 per cent. The BSE Midcap and Smallcap indices rose by up to a per cent.
Around 10:10 AM, the Sensex was 894 points, or 1.11 per cent, up at 81,136, while the Nifty 50 was 240 points, or 1 per cent, up at 24,574.
Investors earned about ₹4 lakh crore within the first hour of the session as the overall market capitalisation of BSE-listed firms jumped to nearly ₹427 lakh crore from ₹423 lakh crore in the previous session.
Why is the Indian stock market rising today?
Experts highlight the following five key factors that are driving the Indian stock market higher:
1. Easing trade war anxiety
Concerns over a trade war between the US and China are easing, driving investors’ risk appetites.
According to Reuters, China’s commerce ministry said the US has repeatedly expressed its willingness to negotiate on tariffs and that Beijing’s door is open for talks.
Earlier, Trump said trade agreements could be reached with India, Japan, and South Korea.
The market is discounting the possibility of favourable trade deals between the US and its allies, which would brighten the global economy’s growth outlook and curtail the risk of inflation.
(This is a developing story. Please check back for fresh updates.)
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