Stock market today: Benchmark indices Nifty50 and BSE Sensex rallied in trade on Friday after a big selloff on Thursday that saw markets tank over 3%. While Nifty50 went above 23,300, BSE Sensex rose over 1,000 points. At 11:35 AM, Nifty50 was trading at 23,307.15, up 305 points or 1.33%. BSE Sensex was at 75,166.77, up 960 points or 1.29%.The rally added more than Rs 6 lakh crore to the total market capitalisation of BSE-listed companies, taking it to Rs 432 lakh crore, according to ET.All sectoral indices on the NSE opened in positive territory, led by Nifty IT and Nifty Metal, which rose nearly 2 per cent each. Market breadth was strong, with 2,303 stocks advancing, 257 declining and 53 remaining unchanged.
Why is stock market rising today? Top reasons
Crude oil prices ease from highsThe rebound was largely driven by a cooling in crude oil prices. After rising above $110 per barrel in the previous session, Brent crude futures declined more than 1 per cent to trade near $107 per barrel on Friday morning. The easing came after major European nations and Japan signalled support for ensuring safe passage of ships through the Strait of Hormuz, while the US outlined steps to boost oil supply. Expectations of some de-escalation in tensions between Iran and the US-Israel bloc also contributed to the decline.However, oil prices remain well above pre-conflict levels, suggesting that caution may still be warranted going ahead.Value buyingMarkets faced heavy selling pressure in the previous session, with the Sensex plunging nearly 2,500 points and the Nifty dropping 776 points. The sharp decline wiped out nearly Rs 12 lakh crore from the total market capitalisation of companies listed on the BSE. Thursday’s fall marked the steepest single-day decline since June 2024, when benchmark indices had slumped 6 percent each following the outcome of the Lok Sabha elections.Following this sharp correction, investors appear to have stepped in to buy stocks at lower valuations, leading to value buying that supported the market’s recovery. However, the rebound has only partially offset the steep losses recorded in the previous session.Expectations of easing Iran-US tensionsImproving sentiment was also supported by hopes of a potential de-escalation in geopolitical tensions. Israel indicated it would refrain from targeting energy infrastructure after an earlier strike on an Iranian gas field triggered retaliatory attacks on energy assets across the Middle East. “Israel acted alone,” Prime Minister Benjamin Netanyahu said at a press conference on Thursday, after Israeli officials had earlier stated that the US had been informed about the strike.US President Donald Trump said he had urged Israeli Prime Minister Benjamin Netanyahu not to carry out further attacks on Iranian energy infrastructure. These developments have raised expectations that tensions between Iran and the US-Israel bloc could ease after weeks of escalation in the region, which had unsettled global markets.Despite the improved mood, several risks remain, and investors continue to stay cautious, with concerns that selling pressure could re-emerge quickly.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
