Last Updated:
At 11:20 am, the BSE Sensex was trading 638.51 points, or 0.84%, higher at 76,698.28, while the NSE Nifty 50 gained 168.70 points, or 0.71%, to 23,936.15.
Why is share market rising today, July 27?
Indian equity benchmarks remained firmly higher in late morning trade on Monday, supported by a broad-based rally across sectors as easing geopolitical tensions in West Asia and a sharp decline in crude oil prices boosted investor sentiment. At 11:20 am, the BSE Sensex was trading 638.51 points, or 0.84%, higher at 76,698.28, while the NSE Nifty 50 gained 168.70 points, or 0.71%, to 23,936.15.
The broader market continued to outperform the benchmarks. The Nifty Midcap 100 advanced 1.10%, Nifty Smallcap 100 gained 1.03%, while the Nifty MidSmallcap 400 rose 1.03%.
Technology stocks remained the biggest gainers, with the Nifty IT index surging 2.27%. Realty, media, healthcare, pharma and chemical stocks also witnessed strong buying, with their respective indices rising over 1%. The Nifty Realty index climbed 1.64%, followed by Nifty Media (1.73%), Nifty MidSmall Healthcare (1.64%), Nifty Pharma (1.04%) and Nifty Auto (0.97%). Banking indices traded with relatively modest gains, with Nifty Bank up 0.63%.
Factors Behind Today’s Market Rally
Relief over easing West Asia tensions: Investor sentiment improved after signs of de-escalation in the US-Iran conflict reduced concerns over disruptions to global oil supplies. The easing geopolitical risk encouraged investors to return to risk assets, supporting gains across domestic equities. The US and Iran paused their strikes against each other over the weekend.
Easing crude oil prices boost sentiment: A sharp decline in crude oil prices emerged as the biggest positive trigger for Indian equities. Brent crude slipped about 4% to around $92.84 per barrel after Iran indicated it would halt attacks as long as the US refrained from further military action. Lower oil prices are favourable for India, a major crude importer, as they help reduce inflationary pressures, improve the current account balance, support the rupee and lower input costs for companies.
Drop in India VIX signals lower risk: The India VIX, often referred to as the market’s fear gauge, declined 5.57% to 13.25. The fall in volatility reflects easing investor anxiety and expectations of lower market swings, encouraging fresh buying in equities.
Positive global market cues: Asian markets, including Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng, traded higher, while Wall Street had ended the previous session mostly in the green. Gains in US futures also pointed to a firm opening later in the day, providing additional support to domestic markets.
IT stocks lead the rally: Technology shares outperformed, with the Nifty IT index rising over 2%, led by strong gains in Infosys after Jefferies upgraded its stance on the sector to “neutral” from “underweight”. The rally in heavyweight IT stocks significantly lifted the benchmark indices.
Rupee strengthens against the dollar: The Indian rupee appreciated against the US dollar, aided by lower crude oil prices and improving global risk sentiment. A stronger rupee added to market optimism by easing concerns over imported inflation.
Stock-specific earnings support: Buying in select stocks following their quarterly earnings also contributed to the market’s gains. Shares of Tata Consumer, NTPC, IDFC First Bank and AU Small Finance Bank advanced after their financial results, adding momentum to the broader rally.
Fed rate pause expectations: Market sentiment also remained supported by expectations that the US Federal Reserve will keep interest rates unchanged at its upcoming policy meeting, although investors continue to monitor evolving rate expectations closely.
About the Author
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
Read More
Source link
[ad_3]
