Mumbai: Indian stock markets continued their strong rally for the third straight session on Wednesday. The Sensex surged over 900 points to around 76,926, while the Nifty 50 crossed the 23,800 mark, rising by more than 247 points.
This sharp rise added nearly Rs 7 lakh crore to the total market value of BSE-listed companies, taking it above Rs 440 lakh crore.
IT Stocks Lead the Rally
The rally was mainly driven by IT stocks. Companies like Infosys, TCS, HCL Technologies, and Tech Mahindra gained 3–4 percent each.
Other stocks such as Adani Ports, L&T, Mahindra & Mahindra, and Eternal also moved higher. However, some stocks like HDFC Bank, Hindustan Unilever, NTPC, and Sun Pharma saw minor declines.
Among sectors, Nifty IT jumped nearly 4 percent, making it the top gainer.
Oil Prices Ease
One of the biggest reasons behind the rally was a fall in oil prices.
- Brent crude fell to around USD 102 per barrel
- WTI crude dropped to about USD 94.53 per barrel
This came after Iraq and Kurdish authorities agreed to resume oil exports, easing supply concerns. Lower oil prices are positive for India as it reduces import costs.
Positive Global Markets
- Global markets also supported the rally.
- US markets ended higher, with Nasdaq up 0.47 percent
- Asian markets like Japan and South Korea saw strong gains
- European markets also closed in the green
This positive global trend improved investor confidence in Indian markets.
Falling Bond Yields
US bond yields have been falling for the past few days. The 10-year yield dropped to 4.19 percent, while short-term yields also declined.
Lower yields make equities more attractive, leading to increased buying in stock markets.
Value Buying After Selloff
Markets had fallen nearly 10 percent earlier in March due to global tensions.
Now, investors are buying stocks at lower levels, known as value buying, which is supporting the current rally.
Risks Still Remain
Despite the rally, risks are still present. The ongoing conflict in the Middle East continues to create uncertainty, especially around oil supply.
Also, foreign investors have been selling Indian stocks, with Rs 4,741 crore outflow in recent sessions.
Rupee Under Pressure
The Indian rupee weakened slightly to 92.43 against the US dollar, affected by high crude prices and a strong dollar. Investors are now watching the US Federal Reserve’s policy decision for further direction.
