Why Did Stock Market Rise Today? Key Reasons Behind Sensex 1,090 Points Surge On April 8 – News18
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Sensex, Nifty Stock Market Today: Sensex and Nifty 50 rallied sharply on Tuesday, gaining over 2% intraday as markets rebounded from the previous session’s fall
Stock Market Rally Today
Why Is Sensex Rising Today? Benchmark indices Sensex and Nifty 50 rallied sharply on Tuesday, gaining over 2% intraday as markets rebounded from the previous session’s steep selloff. The recovery was driven by strong bargain hunting, a broader recovery across Asian equities, and improved investor sentiment amid renewed hopes of progress in US tariff negotiations. This upbeat mood comes just ahead of the Reserve Bank of India’s monetary policy decision, scheduled for April 9, with investors anticipating a 25 basis point rate cut to support growth.
The BSE Sensex jumped 1,089.18 points, or 1.49%, to settle at 74,227.08, while the Nifty 50 surged 374.25 points, or 1.69%, ending the day at 22,535.85.
At day’s high, BSE Sensex zoomed over 1,700 points to trade above 74,800. The Nifty 50 gained 500 points, to trade above 22,650 around 1:30 pm.
The rally was broad-based, with notable gains across key sectors. The Nifty Consumer Durables index jumped 3%, reflecting strong demand optimism, while Metal, Realty, and Financial Services indices also advanced over 2% each. In the broader markets, the Nifty Midcap 100 and Smallcap 100 both rose by around 2%, signaling widespread buying interest beyond large-cap stocks.
Meanwhile, market sentiment was further buoyed by a sharp decline in volatility. India’s Volatility Index (India VIX) dropped 10.2%, falling to 20.47, suggesting reduced investor anxiety and more stable trading conditions. Additionally, the total market capitalisation of BSE-listed companies jumped by Rs 4.61 lakh crore, pushing the overall valuation to Rs 393.86 lakh crore.
Several factors combined to fuel today’s rally, including value buying at lower levels, supportive global cues, optimism around trade negotiations, and expectations of monetary easing. The strength across both frontline and broader indices indicates renewed bullish momentum on Dalal Street.
Why Is Stock Market Rising Today?
Positive Global Cues and Easing Trade Tensions: Indian equities surged on Tuesday, mirroring a broader rebound across Asian markets, as investors grew optimistic about a potential softening in the United States’ aggressive tariff policies.
Leading the regional rally was Japan’s Nikkei, which soared 5.6% following news that U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer had been assigned to negotiate trade terms with Tokyo — a move seen as a diplomatic overture.
Meanwhile, US President Donald Trump maintained his hardline stance, warning of an additional 50% tariff hike if China failed to concede. In response, Beijing dismissed the threats as “blackmail,” refusing to yield to pressure. Despite the ongoing geopolitical tension, Hong Kong’s Hang Seng Index climbed 1.7%, while China’s blue-chip CSI 300 advanced 0.6%, lending support to global sentiment and easing investor nerves.
Bargain Buying After Recent Sell-Offs: Rally in the equity markets also comes as investors capitalize on recent declines, with the Nifty index down over 14.8% from its peak. The mid-cap and small-cap indices have also corrected by around 19% and 22%, respectively.
Anticipation of RBI Monetary Policy Easing: There is growing optimism that the Reserve Bank of India may announce a 25 basis points rate cut in its upcoming Monetary Policy Committee meeting. Such a move is expected to stimulate economic growth and enhance liquidity in the markets.
Strong Performance in Key Sectors: Sectors such as Information Technology, Auto, and Consumer Durables witnessed robust gains. Notably, Titan Company reported a 5% increase following strong revenue growth driven by higher gold prices.
Foreign Institutional Investors (FII) Turning Net Buyers: After a period of net selling, FIIs have resumed buying Indian equities, injecting approximately Rs 5,224 crore month-to-date. This reversal has provided additional momentum to the market rally.
Drop in crude oil prices: Crude oil prices fell below the $65 mark on Monday, its lowest since August 2021, led by concerns that U.S. tariffs might depress demand and lead to a global recession.
Brent crude was trading at $65.07 per barrel on Tuesday, while U.S. West Texas Intermediate (WTI) was at $61.57 around 10:16 am IST.
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