Nifty crosses 26,000 mark and Sensex opens 700 points up, know why stock market is rising today

The BSE Sensex opened nearly 500 points, or 0.66% higher, at 85,000. In addition, the NSE Nifty increased to 166 points, or 0.62%, to trade at 26,033 in the opening trade.

Stock Market Update: On Thursday, the NSE (National Stock Exchange) Nifty gapped up because of the optimism rebound of earnings in the Q2, i.e., the second quarter of the fiscal year. This makes the return of foreign portfolio investments anticipatory to take the market index to a new high-level record. In addition, the BSE (Bombay Stock Exchange) Sensex started at about 734.36, which is 0.7% extra to 85,160.70. On the other hand, the NSE Nifty increased to 198.3 points for trade above the mark of 26,000 in the opening trade. 

Why is the stock market rising today?

The President of the United States mentioned that he had a conversation with the Prime Minister of India regarding trade Narendra Modi, on Tuesday. He further stated that energy too was a part of the talks and that the Indian Prime Minister mentioned limiting its oil business from Russia. 

The Chief Investment Strategist of Geojit Investments Limited, V K Vijayakumar, said that there are some reports of a trade deal between India and the US in the market, and the reaction through Nifty implied open confirms it. As per a report by Mint, the deal may reduce tariffs on Indian goods to almost 15 to 16%.

The rate of rupee increased by 13 paise to 87.80 against the US dollar in the opening trade on Thursday. As per many traders, the incorporation of India’s positive Q2 earnings has also helped boost the optimism of those who invest.

What’s the Chief Market Strategist Anand James saying?

Chief Market Strategy of Geojit Investments Limited said, “High momentum as confirmed by oscillators have been successful in letting Nifty trade close to the upper bollinger band on consecutive days. In this construct, bearish candles formed in the last two days could get ignored initially, before precipitating into a sharp reversal. For now, upside objective is set at 26186, with 26800 appearing as an optimistic objective. Meanwhile, downside marker is placed at 25780, but an outright reversal is not expected today.”