The market is abuzz today, with benchmark indices extending gains to fresh highs, with Nifty rising up to 0.67% or 150 points to 23,812.40 and Sensex advancing 530 points, or 0.71%, to 75,716.65, as of 1:20 pm.
This surge comes against the backdrop of several positive cues, including a cooling crude, and a strengthening rupee.
All sectors, barring Media, Pharma, and IT, are in the green, with gains led by Financial Services, Bank, and Auto.
The broader indices are trading positively, with Nifty Smallcap 250 higher by 0.16%, while the Midcap 150 rose 0.28%.
Here are three reasons the markets are gaining today:
Positive Global Cues
Asia-Pacific markets ended higher on Friday as investors tracked diplomatic moves between the U.S. and Iran aimed at easing tensions in the Middle East. Sentiment, however, remained cautious after reports suggested Tehran plans to retain its enriched uranium stockpile within the country—a stance that could complicate negotiations with Washington, where President Donald Trump has prioritised dismantling Iran's nuclear programme.
In Japan, the Nikkei 225 surged 2.68% to close at 63,339.07, while the broader Topix index gained 1% to 3,892.46. Data showing a sharper-than-expected easing in Japan's core inflation for April—the lowest level since March 2022—has reduced expectations of an imminent rate hike by the Bank of Japan.
Elsewhere, South Korea's Kospi edged up 0.41% to 7,847.71, with the tech-heavy Kosdaq index jumping nearly 5% to 1,161.13. Australia's S&P/ASX 200 also climbed 0.41% to finish at 8,657. In Greater China, Hong Kong's Hang Seng index rose 0.81% in late trade, while the mainland's CSI 300 advanced 1.3% to close at 4,845.1.
Get the latest on the stock markets here.
Banks Leading the Comeback
Nifty Bank has been under pressure for some time, and their comeback might also be one of the reasons for the market going up.
Stronger Rupee
The rupee rose 18 paise to 96.18 against the US dollar in early trade on Friday, on slight cooling in crude oil prices, tentative signs of easing geopolitical tensions, and active RBI intervention in the market.
Forex traders said markets found some comfort after comments from US Secretary of State Marco Rubio hinted that diplomatic talks linked to the Iran situation were moving in a constructive direction.
At the interbank foreign exchange market, the rupee opened at 96.30 against the US dollar, then touched 96.18 in early trade, up 18 paise from its previous close.
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