Benchmarks Sensex and Nifty rebounded sharply on April 1, snapping their two‑day losing streak to jump more than 2.6%, as easing geopolitical tensions in the Middle East helped calm fears over rising oil prices and global inflation.
At 10:20 am, the Nifty was up over 520 points, or 2.42%, at 22,871.05, while the Sensex surged over 1,700 points, or 2.39%, to 73,666.07.
Nifty surged 2.5% intraday for the first time since February 3, reflecting strong risk-on sentiment. Market breadth remained decisively positive, with the NSE advance-decline ratio standing at a robust 9:1. Heavyweights HDFC Bank, Reliance Industries, and Larsen & Toubro contributed the most to the Nifty's upside, providing crucial support to the rally.
All sectoral indices traded in the green, with gains led by the Nifty IND Defence up nearly 5.5%, followed by IT, Media, and Metal, which rose over 3%.
The recovery extended to the broader indices as well, with Nifty Smallcap 250 gaining by over 3%, while the Midcap 150 rose 2.63%.
Here are three reasons why the market is rallying today.
Geopolitical Tensions Easing
The sharp recovery was driven primarily by easing geopolitical concerns, after US President Donald Trump said Washington could wind down its military actions against Iran within the next two to three weeks. He also indicated that Tehran would not necessarily need to reach a formal deal as a precondition for de‑escalation, raising hopes that the conflict may not intensify further.
This soothed investor nerves, particularly around the risks of a prolonged spike in crude oil prices and the knock‑on impact on inflation and global growth, prompting strong buying across equities.
Get the latest updates on the US, Israel-Iran war here.
Positive Wall Street Cues
US stocks posted a strong rebound overnight, with the S&P 500 advancing 2.9%, while the Nasdaq 100 surged 3.4%, marking the best single‑day gains for both indices since May, when the White House rolled back several global tariff measures.
Risk appetite was evident across more speculative areas of the market, as Goldman Sachs Group's basket of the most‑shorted stocks jumped 7.1%, while the small‑cap Russell 2000 climbed 3.4%, reflecting broad‑based buying and a sharp pickup in investor sentiment.
Get the latest updates on the stock market here.
Sectoral Buying
All sectors are trading in the green, led by the Nifty India Defence index. Market breadth stayed strong, with the NSE advance-decline ratio at 9:1. Defence stocks moved higher in trade, led by Garden Reach Shipbuilders, which rose 12.25%. Cochin Shipyard gained 10%, while Mazagon Dock advanced 7.71%. Paras Defence and BEML also rose 6.65% and 6.47%, respectively.
Shares of capital market-linked companies also rallied on Wednesday, after the Reserve Bank of India (RBI) deferred the implementation of its revised norms on banks' capital market exposures. BSE shares surged nearly 6.83% after open, while Angel One was also trading with gains of a similar magnitude. Billionbrains Garage Ventures (Groww) climbed about 4.2%, and CDSL and Motilal Oswal Financial Services were up in the 6-7.5% range during morning trade.
ALSO READ: BSE, Angel One Shares In Focus: Capital Market Stocks Surge After RBI's Deferment Move
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