
Why is the stock market rising today? Sensex surges over 1,300 pts, Nifty crosses 25,100; 6 factors behind the rally
Sensex and Nifty surged over 1.5%, buoyed by hopes of a zero-tariff trade deal between India and the U.S., as investors cheered gains across financial, auto, and IT sectors.
Indian markets surged, with Sensex and Nifty both rising over 1.5%, fueled by optimism surrounding a potential zero-tariff trade deal with the U.S. Lower oil and gold prices, coupled with strong FII inflows and a weakening dollar, further boosted investor confidence. Cooling inflation data also raised hopes for a potential rate cut by the Reserve Bank of India.
Tired of too many ads?
Remove Ads
Here are five key factors driving the rally:
Tired of too many ads?
Remove Ads
1) Zero-tariff trade deal talk with the US
2) Crude Impact
3) Sharp drop in gold prices
Tired of too many ads?
Remove Ads
4) Strong FII inflows
5) Weakening US dollar
6) Cooling inflation boosts rate cut hopes
Indian benchmark indices Sensex and Nifty erased early losses and surged over 1.5% on Thursday, supported by gains in financial, auto, and IT stocks. Investor sentiment improved following reports of a potential zero-tariff trade deal between India and the U.S.As of 2:14 PM, the BSE Sensex was up 1,366 points, or 1.68%, at 82,702, while the Nifty 50 gained 434.5 points, or 1.76%, to reach 25,101.Sectorally, Nifty Financials rose 1.5%, Auto 2.2%, IT 1.2%, and Metal 1.7%. Broader markets also saw gains, with both the small- and mid-cap indices up around 0.6% each.The market capitalisation of all BSE-listed companies surged by Rs 5 lakh crore, reaching Rs 439.86 lakh crore.In a major development from Doha on Thursday, US President Donald Trump revealed that India has offered a trade deal to the United States, which would see "basically zero tariffs" on a broad range of American goods, reported Reuters."India offered US a deal, basically zero tariffs," the Republican leader said during the second leg of his three-nation West Asia tour.Trump's latest comments follow his earlier remarks on April 30, when he said that talks with India on tariff issues were 'going great' and expressed confidence in reaching a final deal soon. Speaking at an event in Michigan, he noted, 'India tariff talks are going great, think we'll have a deal soon.'According to a report by Reuters on May 9, India had proposed to reduce its average tariff differential with the US from around 13% to under 4%—a 9-percentage-point drops. This would be among the most comprehensive moves by India to align its trade policies with major global partners.Oil prices fell by nearly $2 on Thursday amid expectations of a potential U.S.-Iran nuclear deal, which could ease sanctions and increase global supply.Brent crude dropped 3.3% to $63.93 per barrel, while WTI crude fell to $61.05. Lower oil prices help ease inflation concerns and reduce India's import bill, supporting domestic markets.Gold June futures on MCX fell to a one-month low of Rs 90,890 per 10 grams—down 1.5% from Wednesday's close and over 8.5% from its recent peak. The correction comes amid easing geopolitical tensions, reduced demand for safe-haven assets, and a focus shifting to U.S. economic data and Federal Reserve policy.Falling gold prices often indicate reduced risk aversion among investors, which supports higher allocations to equities and reflects improving market confidence.Foreign institutional investors have poured nearly Rs 50,000 crore into Indian equities since April 15, marking net inflows in 19 of the last 20 sessions. This trend follows a three-month phase of persistent outflows.The dollar index fell 0.29% to 100.74 on Thursday, down significantly from 109.88 in early February. A weaker dollar tends to benefit emerging markets like India by encouraging foreign inflows and strengthening the rupee.Meanwhile, as earlier reported, U.S. consumer inflation rose just 0.2% in April, lower than the 0.3% expected by economists, easing concerns over further rate hikes by the Federal Reserve.At the same time, India's retail inflation dropped to 3.16% in April—its lowest level in six years and below the Reuters estimate of 3.27%. The data has raised expectations of a potential rate cut by the Reserve Bank of India, which could further support economic growth and market momentum.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Indian Express
35 minutes ago
- Indian Express
Bank Holidays 2025: Are banks open or closed today on Wednesday, June 11? Check here
Sant Guru Kabir Jayanti / Saga Dawa Bank Holiday Today: According to the Reserve Bank of India's (RBI) 2025 holiday calendar, public-sector banks (PSBs) and private banking institutions in a few Indian cities will be closed on Wednesday, June 11, on account of Sant Guru Kabir Jayanti and Saga Dawa. The Reserve Bank of India (RBI) outlines bank holidays in India, following the Negotiable Instruments Act, RTGS holidays, and other regional and national holidays. Additionally, banks are also closed on the mandatory weekly days off: the second Saturday and Sunday of every month. According to the RBI's calendar for the fiscal year 2025, 12 bank holidays have been designated for June 2025. Sant Guru Kabir Jayanti commemorates the birth anniversary of Kabir Das, a 15th-century Indian mystic poet, saint, and social reformer, known to promote spirituality, social equality, and harmony among religions. Whereas Saga Dawa is a sacred month-long Tibetan Buddhist festival celebrated primarily in Tibet, Sikkim, Ladakh, and other Himalayan regions, it honours three major events in the life of Lord Buddha Shakyamuni: his birth, enlightenment, and parinirvana (death). It's important to note that banks in only two Indian cities will observe closure, and the remaining will be operational as usual; below is the table of bank status for today: Source: RBI Holiday Calendar 2025 It's important to note that despite the physical closure of bank branches in Sikkim and Himachal Pradesh, essential banking services will continue to be available through digital and self-service platforms: Customers are encouraged to plan any in-branch visits around the holiday and make use of online options for uninterrupted banking.


Time of India
an hour ago
- Time of India
Qcomm cos on govt radar; Tata upskills in Taiwan
Qcomm cos on govt radar; Tata upskills in Taiwan Also in the letter: Govt may increase scrutiny on quick commerce firms following hygiene, food safety issues Taking charge: Second strike: Last year, a raid by the Telangana food safety commissioner also flagged lapses at Blinkit warehouses. In response, the FSSAI urged state authorities to step up inspections of quick commerce facilities. The agency also amended norms, mandating that rapid delivery platforms supply products with at least 30% of their shelf life remaining or a minimum of 45 days before expiry. In addition to concerns about food safety, quick commerce firms have also faced scrutiny over the use of manipulative design tactics, known as dark patterns. Also Read: Rapid expansion: Tata Electronics sends hundreds of staff to Taiwan for semicon training Driving the news: Now hiring: Talent hunt: To build its talent pipeline, Tata Electronics is recruiting top executives from chipmakers such as Intel and GlobalFoundries, while also training less experienced employees. Fresh graduates and professionals with some industry exposure are being sent to Taiwan as part of this programme. Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Flexiloans raises another Rs 375 crore from Fundamentum, Accion and others The details: The round was led by existing investors, including Nandan Nilekani's Fundamentum, US-based impact investor Accion, American asset management firm Nuveen, and Denmark-based asset management company Maj Invest. British International Investment (BII), the UK's development finance institution, joined in as a new investor. Tell me more: Founder's take: Wealthtech startup PowerUp Money raises $7 million: Garuda Aerospace raises $1 million: Other Top Stories By Our Reporters Byju's US assets Epic and Tynker sold for a song: Meesho converts to public entity in run-up to IPO: OpenAI's ChatGPT down; users report issues in loading prompts: Global Picks We Are Reading Happy Wednesday! The government may increase surveillance on quick commerce dark stores because of increasing hygiene concerns. This and more in today's ETtech Morning Dispatch.■ ETtech Done Deals■ Byju's US fire sale■ Meesho converts to public entityThe government is likely to increase oversight of quick commerce companies' dark stores following a spate of complaints about food safety violations at facilities run by leading told us that the Food Safety and Standards Authority of India (FSSAI) will lead the effort, with plans for surprise inspections at dark stores and other storage facilities across the FSSAI, which falls under the health ministry, sets standards for the manufacture, storage, distribution, sale and import of food HSBC Global ReasearchThe move follows recent action by the Maharashtra Food and Drug Administration (FDA), which suspended the licences of Blinkit and Zepto's dark stores in Mumbai and Pune after uncovering multiple hygiene breaches and violations of food safety executives and brand founders told ET that the fast and largely 'unchecked' growth of quick commerce platforms, which pushed both marketplaces and brands to scale at breakneck speed, may be at the root of the Electronics is ramping up preparations for its semiconductor fabrication (fab) and assembly and test (OSAT) facility by sending scores of employees to Taiwan for told us that the electronics arm of the Tata Group has sent 'a couple of hundred' employees to its technology partner Powerchip Semiconductor Manufacturing Corporation (PSMC) for hands-on training in the specialised skills needed to operate the upcoming fab in training is being conducted in a phased and structured manner, as PSMC can accommodate only a limited number of trainees at a Rs 91,000-crore fab in Dholera is expected to generate over 20,000 direct and indirect skilled jobs. Tata Electronics has started hiring in batches of 75, according to a person familiar with the matter."Different batches focus on distinct operations like equipment, yield engineering, process technology and another on quality engineering, which is generally a smaller group that doesn't need as many people,' the person Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship opportunities.(L-R) Manish Lunia, Deepak Jain, Ritesh Jain, founders, FlexiloansNon-banking finance company Flexiloans has raised Rs 375 crore in a mix of primary and secondary capital to drive its expansion raise follows a Rs 290 crore infusion in October 2024 . That round had valued the company at $140 million, ET reported at the time. The current raise includes a significant secondary ended FY24 with revenue of Rs 263 crore and a net profit of Rs 3 crore. The company is yet to file its FY25 financials.'Through this round, we have given exits to the high networth individuals who had invested in the company in 2017. Most of our existing institutional investors have doubled down in the company,' said Deepak Jain, a cofounder of wealthtech startup PowerUp Money has raised $7.1 million in its first major institutional funding round, led by early-stage investors Accel, Blume Ventures, and Kae Capital. This round also included participation from 8i Ventures and in April by Prateek Jindal, a former cofounder at Uni Cards, the startup offers direct mutual fund investments to retail startup Garuda Aerospace, backed by former Indian cricket team captain Mahendra Singh Dhoni, has raised $1 million in a funding round from the Narotam Sekhsaria Family Office (NSFO). The company plans to use the funds to scale up manufacturing capacity from 8,000 drones annually to 12,000-15,000 US assets of troubled edtech company Byju's, coding platform Tynker and kids learning platform Epic, have been sold for a fraction of what the company paid for them. A US bankruptcy court approved both sales during a hearing on May 20, as reported by EdWeek Market board of ecommerce marketplace Meesho has approved its conversion into a public entity in anticipation of a planned initial public offering (IPO), as stated in its filings with the Registrar of Companies (RoC).OpenAI's chatbot ChatGPT experienced an outage , with thousands of users encountering difficulties in loading and accessing results for their prompts. The company acknowledged the outage and stated that both ChatGPT and the image generation AI tool, Sora, have been affected.■ Trump's Tech Bros: Can Tim Cook save Apple from the trade war? ( FT ■ Tesla's Robotaxis are rolling out soon—with one big unanswered question ( Wired ■ Google's AI search features are killing traffic to publishers ( TechCrunch


Time of India
an hour ago
- Time of India
Trump tariffs may remain in effect while appeals proceed, US appeals court rules
A federal appeals court has allowed President Trump's tariffs to remain in effect while it reviews a lower court decision that blocked them. The court will consider whether Trump exceeded his authority by imposing the tariffs under an emergency economic powers act. The tariffs, used by Trump as negotiating leverage with U.S. trading partners, and their on-again, off-again nature have shocked markets and whipsawed companies of all sizes as they seek to manage supply chains, production, staffing and prices. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A federal appeals court allowed President Donald Trump 's most sweeping tariffs to remain in effect on Tuesday while it reviews a lower court decision blocking them on grounds that Trump had exceeded his authority by imposing decision by the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. means Trump may continue to enforce, for now, his "Liberation Day" tariffs on imports from most U.S. trading partners, as well as a separate set of tariffs levied on Canada, China and appeals court has yet to rule on whether the tariffs are permissible under an emergency economic powers act that Trump cited to justify them, but it allowed the tariffs to remain in place while the appeals play Federal Circuit said the litigation raised issues of "exceptional importance" warranting the court to take the rare step of having the 11-member court hear the appeal, rather than have it go before a three-judge panel first. It scheduled arguments for July tariffs, used by Trump as negotiating leverage with U.S. trading partners, and their on-again, off-again nature have shocked markets and whipsawed companies of all sizes as they seek to manage supply chains, production, staffing and ruling has no impact on other tariffs levied under more traditional legal authority, such as tariffs on steel and aluminum imports. A three-judge panel of the U.S. Court of International Trade ruled on May 28 that the U.S. Constitution gave Congress, not the president, the power to levy taxes and tariffs, and that the president had exceeded his authority by invoking the International Emergency Economic Powers Act, a law intended to address "unusual and extraordinary" threats during national emergencies. The Trump administration quickly appealed the ruling, and the Federal Circuit in Washington put the lower court decision on hold the next day while it considered whether to impose a longer-term ruling came in a pair of lawsuits, one filed by the nonpartisan Liberty Justice Center on behalf of five small U.S. businesses that import goods from countries targeted by the duties and the other by 12 U.S. states. Trump has claimed broad authority to set tariffs under IEEPA. The 1977 law has historically been used to impose sanctions on enemies of the U.S. or freeze their is the first U.S. president to use it to impose tariffs. Trump has said that the tariffs imposed in February on Canada, China and Mexico were to fight illegal fentanyl trafficking at U.S. borders, denied by the three countries, and that the across-the-board tariffs on all U.S. trading partners imposed in April were a response to the U.S. trade deficit The states and small businesses had argued the tariffs were not a legal or appropriate way to address those matters, and the small businesses argued that the decades-long U.S. practice of buying more goods than it exports does not qualify as an emergency that would trigger IEEPA. At least five other court cases have challenged the tariffs justified under the emergency economic powers act, including other small businesses and the state of California. One of those cases, in federal court in Washington, D.C., also resulted in an initial ruling against the tariffs, and no court has yet backed the unlimited emergency tariff authority Trump has claimed.