Why Share Market Rise: After the statement of Federal Reserve Chief Jerome Powell, enthusiasm returned in the Indian stock market. Sensex and Nifty rose about 1% on expectations of rate cut. Strong rupee, fall in crude oil and positive global cues boosted investor confidence.
Sensex-Nifty Rise Reasons: Today, on Wednesday, there was a strong rise in the stock market. On October 15, both Sensex and Nifty rose by about 1%. By around 3 pm, the Sensex was up by 576 points at 82,605.71, while the Nifty was trading at 25,332.75 with a gain of more than 187 points. In this rally, big stocks like Nestle India, Jio Financial, Asian Paints, HDFC Life and Bajaj Finserv rose up to 3%. Let us know the 6 biggest reasons for the rise in the stock market…
Expectation of Fed rate cut boosted enthusiasm
US Fed chief Jerome Powell said that the US labor market is weak, while the economy currently looks stable. His statement indicates that there may be another rate cut this month, which may lead to a fall in the dollar and bond yields. Emerging markets like India will directly benefit from this, where foreign investors (FIIs) can now take entry again. Experts say that if the Fed makes two more rate cuts in the next two months, then Indian equities will get tremendous support.
Reduction in volatility, relief to investors
Today India VIX fell by about 4% to 10.76. Lower VIX means less fear, more confidence. That means investors are now ready to take risk. The effect of which was visible on the market and a rise in Sensex-Nifty was seen.
rupee became stronger
The rupee today reached 87.93 per dollar, which is 88 paise above yesterday’s all-time low. The currency was supported by the weakness of the US dollar index and possible intervention by the RBI. Strong rupee makes India more attractive for foreign investors.
softening of crude oil
Brent crude fell 0.19% to $62.27 a barrel. IEA (International Energy Agency) has warned of supply surplus by 2026. This is positive news for India, which is a big importer of oil.
Positive signals from global market
Asian markets also remained bullish. Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai SSE and Hong Kong’s Hang Seng all indices remained in the green. Wall Street futures also looked positive, due to which a strong opening is expected in the US market as well.
India-America trade deal expected
After increasing tension between US-China, the possibility of an early trade deal between India and America has increased. US Treasury Secretary Scott Besant accused China of provocative actions and said that work is going on on a coordinated strategy with India and European countries. If this deal happens, the Indian manufacturing and tech sector can get big benefits.
Disclaimer: This article has been written for general information purposes only. The information given herein is not investment advice. Before investing in the stock market, definitely consult your financial advisor.
Read this also- Tata Motors PV vs CV: Which stock will give higher returns? Know the opinion of brokerage
Read this also-Best Stocks for Diwali 2026: Print money from these 5 shares till next Diwali!