On Wednesday, the major equity indices Sensex and Nifty continued their upward trend for a second day in a row, increasing by as much as 2%. A significant drop in crude oil prices and encouraging signals from Asian markets about expectations of a de-escalation in the war in West Asia bolstered the gains.
The Sensex increased by 1,383.16 points, to 75,451.61 at 2:45 pm, while the Nifty as a whole increased by 446.05 points, to 23,358.45. The Nifty rose 399.75 points, to close at 22,912.40 on Tuesday, while the Sensex increased 1,372.06 points, to conclude at 74,068.45.
Despite recent increases, local benchmarks have fallen by almost 7.6% each so far this month due to concerns about energy supply and high crude prices, which have affected the economic outlook and prompted foreign investor outflows.
Every one of the sixteen main Nifty sector indicators was up. The more comprehensive Nifty smallcap100 and Nifty midcap100 indices saw gains of 2.9% and 2.4%, respectively.
Key factors behind the market rally:
Crude oil decline: At USD 99.95 a barrel, Brent crude, the global oil benchmark, dropped 4.34 percent.
Firm global cues: Asian markets, such as the Nikkei 225 in Japan, the Kospi in South Korea, the SSE Composite in Shanghai, and the Hang Seng in Hong Kong, were all rising. Additionally, Wall Street futures showed that US markets would open favorably.
US-Iran ceasefire hopes: According to Reuters, US President Donald Trump has stated that efforts to end the crisis are progressing, and a source has verified that Tehran has received a settlement proposal. However, Iran denied that direct negotiations were taking place.
India VIX falls: The volatility index, sometimes known as the market’s fear gauge, decreased by 0.31 percent to a level of 24.66. A lower VIX supports stocks by indicating fewer expectations for market volatility and more investor confidence.
