On Wednesday, April 15, a new round of buying started in the Indian stock market, due to which the benchmark indices closed up by more than 1.5 percent. The Bombay Stock Exchange’s key index Sensex closed 1,264 points, or 1.64 per cent, higher at 78,111.24, while the Nifty 50 jumped 389 points, or 1.63 per cent, to settle at 24,231.30. Nifty Midcap 100 and Smallcap 100 indices rose more than 2 percent.
Due to this rise, stock market investors got huge profits. In fact, the market cap of BSE increased from Rs 449 lakh crore to Rs 458 lakh crore. This means that the market cap increased by more than Rs 9 lakh crore. This is also the income of stock market investors. Let us also tell you what are those 5 reasons due to which there was a rise in the stock market.
5 main reasons for the rise in Indian stock market
US-Iran talks will resume
The market welcomed reports that the US and Iran may soon start talks to find a permanent solution to their dispute. As Reuters reported, US President Donald Trump said that talks with Iran could resume in Pakistan in the next two days. Signs of diplomatic talks eased market tension as the first round of talks between the two sides last weekend did not yield any desired results.
Crude oil prices fell further
On Wednesday, Brent crude fell further and started trading around $ 95 per barrel, which improved the mood of the market. After falling nearly 5% in the previous session, Brent crude futures fell nearly 0.40 per cent to $94 per barrel during this session. US West Texas Intermediate crude fell more than 1 percent to $90. It had fallen 8 percent in the previous session, when President Trump said that talks to end the US-Iran war could resume in Pakistan in the next two days.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said expectations of resumption of talks between US-Iran and Israel-Lebanon, and a $10 fall in Brent crude prices in two days, are good signs for the market in the near future. The strength of markets around the world – despite IMF warnings that the conflict could lead to a global recession if it goes on for too long – is a sign that markets are assuming the conflict will end soon.
boom in foreign markets
The rise in major markets around the world has also boosted the morale of the Indian stock market. In fact, due to the possibility of US-Iran talks resuming soon, there has been a rise in foreign markets. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.5 percent to its highest level in six weeks. Japan’s Nikkei also rose 1 percent, while Korea’s Kospi rose 3 percent. Overnight, the US stock market witnessed tremendous gains. The Nasdaq rose 2 percent and the S&P 500 rose 1.2 percent to near its record closing price.
improvement in rupee
The rise in rupee also affected the market environment. In early trade on Wednesday, the Indian rupee strengthened by 12 paise to 93.23 per dollar due to easing geopolitical tensions and fall in crude oil prices.
fall in india vix
India Vix – which measures market volatility – fell nearly 10 per cent to 18.57. This is an indication that uncertainty in the near future has reduced and the risk appetite of investors has increased.
