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Indian benchmark indices extended their gains on Tuesday, following Monday’s momentum; Know why are Sensex, Nifty rising today?
Are bulls here to stay on D-street? (AI-generated image)
Why Is Market Rising Today: Indian benchmark indices continued their upward trajectory on Tuesday, riding on the momentum from Monday’s rally. The Sensex surged by 1,000 points, while the Nifty traded above 22,800. The rally was led by strong performances in financials and metals, with all sectors in positive territory. The market was fueled by a mix of favorable global cues, domestic tailwinds, and technical strength, boosting investor optimism.
By 3:11 PM, the BSE Sensex had gained 1,140 points (1.54%) to reach 75,308, while the NSE Nifty rose 324 points (1.44%) to 22,833.
Investors are eyeing key policy decisions this week from the US Federal Reserve, Bank of Japan, and Bank of England, all expected to hold interest rates steady.
The market capitalization of all listed companies on the BSE increased by Rs 6.36 lakh crore to Rs 399.53 lakh crore.
Why Is The Stock Market Is Rising Today?
Positive Global Cues
Indian equities followed the strong rally across Wall Street and Asian markets. Hong Kong’s Hang Seng Index surged 2% on Tuesday, reaching a three-year high, fueled by investor optimism over China’s economic outlook. Positive economic data and policy measures aimed at stimulating consumption further boosted sentiment. The Hang Seng Index has now gained 23% year-to-date, making it the best-performing major market globally. In Asia, Chinese mainland stocks saw modest gains, while MSCI’s broad index of Asia-Pacific shares rose 1%. Markets in Seoul, Sydney, and Taipei also advanced. Japan’s Nikkei rebounded 1.5%, marking its largest daily gain in three weeks.
Boost from China’s Stimulus Measures
China has stepped up efforts to boost domestic demand with new measures, including childcare subsidies and a “special action plan” to support consumption. Retail sales data released on Monday showed a growth acceleration in China, offering relief to policymakers striving to revive household spending.
US Retail Sales Data
Investor sentiment also received a boost after US retail sales rebounded in February, rising 0.2% following a sharp 0.9% decline in January.
Weakening US Dollar
The US dollar hovered near a five-month low against the euro and other major currencies. The dollar index has dropped nearly 6% from its two-year high of 110.17 in mid-January, standing at 103.44. The Indian rupee opened slightly higher at 86.7625 per USD on Tuesday, benefiting from the dollar’s weakness.
Bargain Buying
The Indian market continued its recovery from Monday, with investors seizing attractive valuations in beaten-down stocks. Technical indicators suggested the market had been oversold, making the rebound a natural course of action. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that positive domestic cues, such as GDP growth and a rise in gross tax collection, are favorable macro trends supporting the market.
All Eyes on Russia-Ukraine Conflict
Geopolitical developments also influenced sentiment. US President Donald Trump’s potential discussions with Russian President Vladimir Putin regarding a ceasefire proposal for the Russia-Ukraine conflict helped support riskier assets. A resolution could ease global energy prices and stabilize broader markets.
Nifty Technical
Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted a positive trend in Nifty based on the daily chart, with a bullish candle formation and a higher bottom pattern. He stated that as long as Nifty stays above 22,350 and Sensex above 73,800, bullish momentum is likely to continue.
Is The Worst Over For Dalal Street?
Despite strong domestic signals, global challenges such as trade wars and foreign capital inflows into China may hinder a sustained move higher. Dr. Vijayakumar noted that while domestic tailwinds are positive, global headwinds, particularly from tariff wars, could limit the market’s upward potential. Additionally, foreign institutional investors (FIIs) are increasingly focused on China, leading to FII selling in emerging markets like India, where valuations remain high.
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