Stock market today: BSE Sensex and Nifty50 rallied strongly in trade on Wednesday as multiple factors worked to lift the market sentiment. A recovery in South Korean markets and supportive global developments also aided the rally. The Sensex climbed almost 791 points to settle at 76,991, while the Nifty 50 gained about 198 points to close at 24,022. Among Sensex constituents, IndiGo and Trent emerged as the top gainers, rising around 4% each. Tech Mahindra, Bajaj Finance, ICICI Bank and Infosys also posted strong gains of nearly 3% apiece. On the losing side, Maruti Suzuki, NTPC, Tata Steel and Bharat Electronics declined by close to 2% each.
Why did the stock market rise today?
Supportive global market cuesIndian equities had come under significant pressure in the previous session after South Korea’s Kospi index tumbled 10% on concerns that valuations had become overheated following an extended rally. However, sentiment improved on Wednesday as the Kospi staged a strong recovery, rising around 3%.RBI Governor eases concerns over additional rate hikesA key factor supporting market sentiment was RBI Governor Sanjay Malhotra’s indication that discussions around further interest rate increases may be premature at this stage.He said the central bank is closely monitoring the broader economic impact of higher oil prices, particularly any potential second-round effects on inflation, before making decisions on future monetary policy actions.“We do not see signs of inflation generalizing yet,” Malhotra said.Crude oil slips below $77 per barrelOil prices continued to weaken and remained near four-month lows amid indications that more tankers stranded in the Gulf since the onset of the Iran conflict could soon resume transit through the Strait of Hormuz.Brent crude futures fell nearly 1% to around $76 per barrel, while US West Texas Intermediate (WTI) crude declined more than 1% to trade near $72 per barrel.Optimism over an India-US trade agreementMarket sentiment also received support from growing expectations of a trade pact between India and the United States.Bethany Poulos Morrison, US Deputy Assistant Secretary of State, said the two countries are “very, very close” to finalising a landmark bilateral trade agreement that would provide reciprocal market access and open India’s 1.4-billion-strong consumer market to American products on mutually beneficial terms.Separately, Commerce Minister Piyush Goyal met US Trade Representative Jamieson Greer as negotiations intensified ahead of July 24, when Washington’s temporary 10% tariff on imports from trading partners is scheduled to expire.Continued foreign investor buyingForeign institutional investors remained net buyers of Indian equities for a third straight session, purchasing shares worth ₹18 crore despite the sharp market decline in the previous trading session.VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the pace of foreign selling appears to be easing, a trend he described as constructive for the broader market.Strong buying in IT and banking stocksThe rally on Dalal Street was largely driven by gains in heavyweight information technology and private banking stocks.As a result, the Nifty IT and Nifty Private Bank indices rose around 2% each. Among banking stocks, ICICI Bank and HDFC Bank gained as much as 3%, while Axis Bank and Kotak Mahindra Bank advanced more than 1%.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)
