Stock market today: BSE Sensex and Nifty50 snapped their five day losing streak on Monday to rally strongly and finish in green. BSE Sensex closed the day at 76,835.78, up 776 points or 1.02%. Nifty50 ended at 23,995.95, up 228 points or 0.96%.Improving relations between Iran and the US, softer crude oil prices and other supportive factors boosted investor confidence. Buying was broad-based, with almost every sectoral index trading in positive territory. Nifty FMCG and Nifty IT led the advance, each rising more than 1%. Market breadth also remained firmly positive, with 2,229 stocks advancing on the NSE against 436 declines, while 91 stocks ended unchanged.
Why did the stock market rise today?
Iran-US tensions easeThe US and Iran suspended military strikes over the weekend after two weeks of hostilities, raising hopes of a diplomatic breakthrough that could ease regional tensions and facilitate the resumption of shipping through the Strait of Hormuz. US Ambassador to the United Nations Mike Waltz said President Donald Trump had decided to pause military action to provide additional time for diplomacy. In response, Tehran announced that it would halt retaliatory attacks on neighbouring countries, offering temporary relief to Gulf shipping and the oil industry.Iran also said it had made progress in discussions with Oman on the management of the Strait of Hormuz. According to Iranian foreign ministry spokesperson Esmaeil Baqaei, the talks centred on “common principles and operational mechanisms” aimed at ensuring the safe movement of vessels through the strategic waterway.Oil prices tumbleCrude oil prices fell sharply as geopolitical tensions eased. Brent crude futures declined more than 4% to trade below $ 93 per barrel, while WTI crude slipped to around $85 per barrel. Value buyingThe market rebound was also supported by value buying after Indian equities witnessed a steep correction over the previous week. Vinod Nair, Head of Research at Geojit Investments, had said following last week’s selloff that a meaningful improvement in earnings momentum was likely only from the second half of FY27, with the recovery dependent on crude oil prices stabilising and tensions in West Asia easing.He added that unless oil prices moderated and geopolitical risks receded, any re-rating of the Indian equity market would likely be gradual rather than rapid, making a strong case for investors to remain invested and continue accumulating quality businesses instead of staying on the sidelines.Bond yields declineUS Treasury yields eased after touching record highs last week, providing additional support to equity markets. The yield on the benchmark 10-year US Treasury note fell to 4.637%, while the 30-year Treasury bond yield declined to 5.122%. Lower bond yields generally reduce the relative appeal of fixed-income investments, encouraging investors to allocate more capital towards equities.AI concerns could attract FPIs backThe recent correction in semiconductor stocks and concerns surrounding the artificial intelligence theme could revive foreign portfolio investor (FPI) interest in Indian equities, according to VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He said the breadth and diversity of listed companies in India remain unmatched among emerging markets.“At some point the FPIs will be forced to recognise this and move away from markets dominated by a single stock or two stocks as in Taiwan and South Korea,” he said.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)
