Why Is Indian Stock Market Up Today? Sensex Gains Over 450 Points, Nifty Rises, Crude Oil, Fed Rate Outlook and Banking Stocks in Focus; Check Top Gainers, Losers and What Investors Should Know

Indian Stock Market Today:  The Indian equity markets made a strong rally on Monday, October 5, after witnessing eight weeks of consecutive losses. The Sensex surged over 450 points in morning trades, whereas the Nifty 50 broke above the 22,500 level owing to falling crude prices, diminishing hopes of a US Fed rate rise, along with rallies in banking and finance stocks.

It was after a period of sustained fall in Indian equity markets, resulting from heavy foreign selling pressure, high crude prices, and increasing bond yields in international markets. But the current rally is also surrounded by many risks which include the rupee, foreign investments, US bond yields, and geopolitics.

Why Is Indian Stock Market Up Today?

BSE Sensex began at 72,340.95 and climbed 431.25 points, representing a 0.60 percent gain compared to its last closing price of 71,909.70. The market index then proceeded to climb further and saw gains of over 450 points in the first few minutes of trading.

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The Nifty 50 opened at 22,532.40, rising 110.45 points, representing 0.49 percent. The Nifty 50 hit an intraday high of around 22,565.

According to Reuters, by 9:18 am IST, the Sensex stood at 72,390.30, having risen 0.67 percent, while Nifty was at 22,556.45, up 0.60 percent. Out of the 16 sectors, 13 were up while mid and small cap indices rose around 0.9 percent each. The recovery is crucial as the benchmarks recently witnessed their eighth straight week of losses, marking their longest streak in 25 years.

Crude Oil Prices Ease, Supporting Indian Stocks

Crude oil prices falling are one of the key factors behind Monday’s rebound. The prices for Brent crude were hovering between $101.6 and $102 per barrel, while prices for US West Texas Intermediate crude were at $90-$90.3 per barrel.

The rise in oil prices is a serious worry for India due to its heavy reliance on imports of crude oil to satisfy its needs. Thus, the drop in oil prices would alleviate worries regarding India’s import bill, inflation, and rupee. According to market reports, higher exports from the Middle East and oil releases by the G7 countries have helped address the supply worries.