Nifty Above 23,500, Sensex Up 1,000 Points From Day's Low — Three Key Reasons Why Market Is Rising

The market is abuzz today, with benchmark indices extending gains to fresh highs, with Nifty reclaiming the 23,500 level rising up to 0.65% or 162 points to 23,534.85 and Sensex is up 1,000 points from the day's low, and is trading 0.72% higher to 74,800, as of 2:10 pm.

This surge comes against the backdrop of several positive cues, including a rally in IT stocks, and an easing VIX.

Most sectors are in the green, with gains led by IT which is up over 4%, followed by Realty and PSU Bank. Pharma is down by 0.8%.

The broader indices are trading positively, with Nifty Smallcap 250 higher by 0.42%, while the Midcap 150 rose 0.25%.

Here are three reasons the markets are gaining today:

IT Stocks Rally

Nifty IT has emerged as the biggest star on Tuesday's trade. The IT index has surged more than 4%, driven by positive global cues surrounding the IT and technology space. 

The strong rally in the IT index has been led by Infosys and Tata Consultancy Services, with both IT majors trading with gains of more than 5%. TCS, in fact, is flirting in the 6% range while Coforge, too, has gained more than 5% in trade on Tuesday.

Easing Vix

India VIX, the market's fear gauge, fell 3% to 16.03 on June 2, suggesting investors are growing more comfortable buying at current levels.

Weekly F&O Expiry

Today marks the weekly expiry of Nifty 50 F&O contracts. Derivatives contracts expire on pre-scheduled dates every month, and these sessions often see heightened volatility, sharp price swings, increased liquidity, and rollover activity.

Such expiry sessions are typically marked by elevated trading activity as traders unwind or roll over positions. The surge in volumes can amplify intraday volatility, leading to price movements that may temporarily diverge from broader market trends.

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