The Indian stock market woke up to a confident mood. Buying interest returned across the board. By midday, the story was clear—Sensex jumps over 850 points, and the tone of the market had decisively changed.
After days of pressure, the shift felt sudden but not random. Global comfort, easing tensions, and improving sentiment combined to spark a broad-based rally. The result was visible on screens—and in investor wealth.
Market Performance: A Strong, Broad-Based Rally
The rally was not limited to a handful of stocks. It spread across large caps, midcaps, and smallcaps.
Key market moves during the session:
- Sensex surged over 850 points, rising more than 1%
- The index touched an intraday high of 82,783
- Nifty 50 climbed over 1%, crossing 25,435
- BSE Midcap and Smallcap indices jumped nearly 2% each
The momentum showed strong participation, suggesting confidence was returning after recent selling pressure.
Investors’ Wealth Rises by ₹7 Lakh Crore in One Session
As markets moved higher, investor wealth expanded sharply.
- Total market capitalisation of BSE-listed companies rose to nearly ₹461 lakh crore
- In the previous session, it stood at about ₹454 lakh crore
- That marks an increase of roughly ₹7 lakh crore in a single trading day
This jump reflects not just price gains, but a shift in sentiment that lifted multiple sectors at once.
Why the Indian Stock Market Is Rising Today?
The reasons behind the rally are tied closely to global developments and recent market positioning. There was no single trigger—rather, a combination of relief factors coming together.
Global Relief as US-EU Trade War Fears Ease
Markets reacted positively to a softer global tone.
US President Donald Trump stepped back from earlier tariff threats linked to Europe and Greenland. His comments pointed toward a framework discussed with NATO, reducing immediate concerns around trade disruptions.
This change cooled fears of a full-blown US-Europe trade war, which had earlier weighed on global markets and risk appetite.
As global uncertainty eased, equity markets—including India—found space to move higher.
Renewed Optimism Around India–US Trade Talks
Another boost came from improved sentiment around India–US relations.
Donald Trump publicly expressed positive remarks about India and Prime Minister Narendra Modi. He said both countries were moving toward a “good trade deal.”
While no details emerged, the tone itself was enough to lift confidence. For markets, sentiment often moves ahead of paperwork—and this optimism helped reinforce the upward move.
Short Covering Fuels the Rally After Recent Selloff
Domestic factors also played an important role.
- Over the previous three sessions, the Sensex had fallen 1,661 points
- Nifty 50 had declined about 2% during the same period
This sharp drop had created a buildup of short positions. As global cues improved, traders rushed to cover these positions.
That short covering added speed to the rally, especially during early hours of the session.
Q3 Earnings Largely Meet Expectations
Corporate earnings also provided support.
December-quarter results announced so far have largely stayed in line with expectations. There were no major negative surprises that could unsettle the market.
While some companies reported one-time impacts due to new labour code provisions, the broader earnings picture remained steady.
This consistency helped reinforce confidence, giving markets little reason to stay cautious.
Summary: Why Sensex Jumps Over 850 Points Matters?
The session marked a clear turnaround in mood.
- Sensex jumps over 850 points, signaling renewed risk appetite
- Market capitalisation rises by ₹7 lakh crore
- Global tensions ease, lifting sentiment
- Trade optimism and short covering strengthen the rally
- Earnings stability adds comfort
The move reflects a market responding to clarity, not speculation. After days of uncertainty, investors found reasons to step back in—and the numbers told the story clearly.
For now, the rally stands as a reminder of how quickly sentiment can change when pressure points begin to fade.
Source: Livemint
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