Sensex jumps 1,509 pts, Nifty above 23,800: 6 reasons behind the rally

Hi, you are listening to ET Markets Radio – I am Neha Vashishth Mahajan, welcome to a brand new episode of ET Market Watch – let’s get started with today’s top highlights

The BSE Sensex soared over 1,500 points and the Nifty50 closed above 23,850. The rally was driven by strong buying in financial stocks, even as concerns lingered over U.S. tariff policies and a global economic slowdown. Here are the top 6 factors:
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1) Banking Stocks Lead Charge
– Bank Nifty led the rally and rose nearly 2.2%, fueled by gains in HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank.
– These four alone contributed 730 points to the Sensex rally.
– Gains came ahead of Q4 earnings (April 19) for HDFC Bank and ICICI Bank.

2) FIIs turn bullish
– FIIs net buyers for second straight day, and bought Indian equities worth Rs 3,936 crore on Wednesday.
– Markets saw Rs 10,000+ crore inflows in just two days.

3) U.S.-Japan Trade Talks Support Asia
– Positive cues from ongoing trade talks between the US and Japan.
– Trump joined negotiations and claimed there is “big progress.”
– Japan’s Nikkei rose about 1.35%, while its currency, yen, weakened.

4) Dollar Down
– Dollar Index down to 99.56 from 109.88 (Feb levels).

– A Weaker dollar = more foreign inflows, stronger rupee.
– Metals, risk assets rose higher due to currency movement.

5) Tariff Relief
– Sentiment has been buoyed by Trump’s 90-day tariff exemption for 75 countries (incl. India) till July 9.
– This has given temporary relief amid global trade tension.

6) Cheaper crude
– Brent traded at $66 a barrel while WTI traded at $63. Less oil import burden means lower inflation + better current account outlook for India!

Well, that is all for today’s ET Market Watch – This is Neha Vashishth signing off…