Why stock market is rising today: Sensex jumps nearly 1,000 pts; Nifty above 23,200; 4 factors behind today’s surge

Indian benchmark indices surged on Thursday, with the Sensex rallying 900 points and the Nifty50 closing above 23,150. Gains in banking and IT stocks fueled the rally as the U.S. Federal Reserve maintained its rate-cut projections for the year despite concerns over tariffs.

The BSE Sensex climbed 899 points, or 1.19%, to settle at 76,348, while the Nifty50 gained 283 points, or 1.24%, ending at 23,190.

The total market capitalisation of all BSE-listed companies jumped by Rs 3.32 lakh crore to Rs 408.32 lakh crore.

Why the stock market rose today

1) Fed signals two rate cuts in 2025

The U.S. Federal Reserve kept interest rates unchanged, as expected, and maintained its projection of two quarter-point rate cuts by the end of 2025, in line with its December forecast.

However, the Fed lowered its economic growth outlook and raised inflation expectations, citing the impact of tariffs imposed by U.S. President Donald Trump. With most tariffs set to take effect in early April, policymakers are monitoring their impact on inflation and economic conditions.

Lower U.S. interest rates weaken the dollar and reduce Treasury yields, making emerging markets like India more attractive to foreign investors.

“The Fed holding the rates and projecting lower growth at 1.7% and higher inflation at 2.8% for 2025 are on expected lines. More significant is the Fed chief’s comment that policy can move either way depending on the evolving outlook. The evolving outlook is highly uncertain thanks to Trump’s tariff tantrums,” Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said.

2) IT stocks lead the market rally

The Nifty IT index, which had declined 16.4% in 2025, rebounded with a gain of over 1.2% today, leading the market rally.

IT companies, which generate a significant portion of their revenue from the U.S., saw strong buying interest. HCL Technologies, Tata Consultancy Services, Wipro, and Infosys gained up to 2%. These IT stocks alone contributed nearly 200 points to the Sensex’s rise.

3) Global market optimism lifts Indian equities

Indian stocks tracked global gains as Asian markets rallied on Thursday, following a strong performance on Wall Street. Investor sentiment improved after the U.S. Federal Reserve reaffirmed its outlook for two rate cuts this year and downplayed concerns over Trump’s tariff threats.

Australian stocks climbed 1%, while U.S. futures extended their rally. Nasdaq futures were up 0.62%, and S&P 500 futures rose 0.46%.

4) Falling U.S. bond yields and a weaker dollar boost sentiment

The U.S. 10-year Treasury yield fell to 4.245% from around 4.5% in mid-February, while the 2-year yield declined to 3.993% from 4.28%. Meanwhile, the U.S. Dollar Index stood at 103.36, supporting positive sentiment in emerging markets like India.

A weaker dollar and lower U.S. bond yields make Indian equities more attractive to foreign investors, potentially driving higher inflows into the market.

“Consistent falls of the US dollar index (DXY) have reduced the intensity of FII selling while DII buying continues to be strong, thus triggering the recent upside,” said Vinod Nair, Head of Research, Geojit Financial Services.