Stock Market Rally Reason, Sensex Today: Sensex and Nifty 50 continued their relief rally as both the indices jumped more than 2 per cent each in intraday. Building on the previous session's gains, Sensex jumped 1,205 points or 1.63 per cent to settle at 75,273.45. The NSE Nifty surged 394.05 points or 1.72 per cent to end at 23,306.45.
From the Sensex pack, UltraTech Cement, Bajaj Finance, Larsen & Toubro, Titan, InterGlobe Aviation and Trent were the biggest gainers. Tech Mahindra, Power Grid, Tata Consultancy Services and Bharat Electronics were the laggards.
All the sectoral indices also closed in the green, with Nifty Consumer Durables and Nifty Realty surging more than 4 per cent each in intraday moves. The Nifty Bank index added more than 1,000 points or 2.03 per cent to finish at 53,674.15.
The mid and smallcaps indices also gained in trade. The NIFTY MIDCAP 100 and NIFTY SMALLCAP 100 rallied more than 2 per cent each.
BSE Market Capitalisation
Today's strong rally has lifted the market capitalisation of all the BSE listed companies by more than Rs 9.50 lakh crore.
According to BSE website, the total market capitalisation of all BSE-listed companies stood at Rs 4,31,01,834.74 crore, up from Tuesday's all-India market capitalisation of Rs 42,223,593.19 crore.
In the past two sessions, the market cap has grown by more than ₹15 trillion, up from Monday's m-cap of ₹414.52 trillion.
Sensex, Nifty Today Rally: Key Reasons
Analysts said that Sensex and Nifty 50 gained after a sharp decline in crude oil prices and a positive trend in Asian markets, amid hopes of de-escalation in the West Asia war.
Crude Oil Prices
India imports more 85 per cent of its oil needs. Any decline is oil prices is a positive news for Indian economy as it will keep the current account deficit (CAD) under control. Recently, oil marketing companies increased their premium petrol and diesel prices to offset the impact of rising crude, which surged to around USD 115 recently on supply disruption fears.
Brent crude, the global oil benchmark, tumbled 4.34 per cent to USD 99.95 per barrel.
"Crude oil prices have slipped below the USD 100 per barrel mark, reflecting sustained market optimism around the prospects of a diplomatic breakthrough," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
Middle East Tensions Ease
The markets were buoyed by comments from US President Donald Trump suggesting the possibility of negotiations between the United States and Iran. The potential for diplomatic engagement has provided some relief to global investors, raising hopes of a de-escalation in Middle East tensions.
"Hope is returning to the market with indications of de-escalation in the conflict. Remarks from Trump and from the Iranian regime indicate that the conflict might end soon. Particularly the reiteration from Iran that 'non-hostile ships can transit the Strait of Hormuz' is good news that will mitigate India's energy concerns," VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said.
Global Markets Rally
A broad based rally in Asian markets also provided sentimental support to Indian markets. In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading in positive territory.
The US market, however, ended lower on Tuesday.
Earlier on Tuesday (March 24), the Sensex jumped 1,372.06 points, or 1.89 per cent, to settle at 74,068.45. The Nifty surged 399.75 points, or 1.78 per cent, to end at 22,912.40.
