logo
Why is the stock market rising today? Sensex surges over 1,300 pts, Nifty crosses 25,100; 6 factors behind the rally

Why is the stock market rising today? Sensex surges over 1,300 pts, Nifty crosses 25,100; 6 factors behind the rally

Time of India15-05-2025

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.
Here are five key factors driving the rally:
1) Zero-tariff trade deal talk with the US
Live Events
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.
2) Crude Impact
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.
3) Sharp drop in gold prices
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.
4) Strong FII inflows
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.
5) Weakening US dollar
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.
6) Cooling inflation boosts rate cut hopes
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.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Since 1960, poll rolls being shared with parties: CEC Gyanesh Kumar
Since 1960, poll rolls being shared with parties: CEC Gyanesh Kumar

Time of India

time36 minutes ago

  • Time of India

Since 1960, poll rolls being shared with parties: CEC Gyanesh Kumar

NEW DELHI: In a first but indirect rejoinder to Rahul Gandhi's allegations of enrolment of fake voters for Maharashtra polls, chief election commissioner Gyanesh Kumar underscored the statutory sharing of electoral rolls with all recognised political parties year after year since 1960, with a provision for them to make claims, objections and appeals. Delivering the inaugural address at the International Conference on Electoral Integrity (IDEA) in Stockholm on Tuesday, Kumar described the annual roll revision exercise in India as "the world's most rigorous and transparent", adding that it reinforced the accuracy and integrity of the electoral process. He noted that "this robust mechanism plays a vital role in upholding electoral credibility across the country, year after year". Rahul recently reiterated his charge that BJP owed its landslide win in Maharashtra last year to an unusual surge in number of voters after Lok Sabha polls. Officials in Election Commission, speaking anonymously, had dismissed the charge, saying addition of votes in Maharashtra was less than the increase in number of voters for Telangana and Jharkhand polls which were won by Congress and its allies. Congress kept up its protest, while also emphasising that EC officials had not spoken "on record". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 오스템 임플란트 받아가세요 임플란터 더 알아보기 Undo Apprising the participants - representing election management bodies (EMBs) of around 50 countries - about the massive scale of Indian elections conducted under the watch of political parties, candidates, observers and the media, the CEC said the poll panel, with over 20 million personnel, including polling staff, police forces and observers, "becomes the world's largest organisation, surpassing the combined workforce of several national govts and major global corporations and ensures that India's nearly one billion electors are freely able to exercise their franchise". Kumar traced the evolution of Indian elections over the decades, noting how the system has adapted to increasing complexity while staying rooted in constitutional values. "From 173 million electors in 1951-52 to 979 million in 2024, and from just 0.2 million polling stations in the early years to over 1.05 million today, India's electoral journey has demonstrated both institutional foresight and unmatched scale," he said. Kumar added that 743 political parties and 20,271 candidates contested elections across the country using 6.2 million EVMs. Reflecting on the inclusive design of Indian elections, Kumar said the electoral process serves first-time voters, senior citizens aged 85+, persons with special abilities, third-gender electors, and voters in the most inaccessible regions with equal care and commitment. From polling booths with a single elector to highest altitude stations like Tashigang in Himachal Pradesh, India's commitment to leaving no voter behind is reiterated as a constitutional principle rather than a logistical challenge, he said.

Asked Modi to stop Hasina from speaking, he said not possible due to social media: Yunus
Asked Modi to stop Hasina from speaking, he said not possible due to social media: Yunus

Time of India

time43 minutes ago

  • Time of India

Asked Modi to stop Hasina from speaking, he said not possible due to social media: Yunus

LONDON: Chief adviser to the interim Bangladesh govt, Mohammad Yunus , told delegates at Chatham House Wednesday he had asked Prime Minister Narendra Modi to stop ousted Bangladesh PM Sheikh Hasina from 'speaking' after she fled to India but Modi replied that it was not possible because of social media. 'I said to PM Modi: 'You want to host her? I can't force you to abandon that policy, but please help us in making sure she doesn't speak to Bangladeshi people the way she is doing as the whole of Bangladesh gets very angry.' India is not doing what I asked. Modi's answer was: 'It is social media, we can't control it.' What can you say? It's an explosive situation. You can't just walk away by saying it's social media,' Yunus said. 'We want to build the best relationship with India – but somehow things go wrong all the time because of all fake news coming from the Indian press,' he said. 'Some people say it has connections with policy makers at the top. This is what makes Bangladesh very jittery. A whole barrage of things keep happening in cyber space.' Yunus said Awami League didn't need to be part of the 2026 elections as 'it isn't a political party'. He pledged to hold 'the most beautiful election ever'. 'If they can kill young people on the street, make people disappear, steal money, would you call them a political party? None of them has ever expressed remorse. For the safety of politics of this country, the nation has decided that, for time being, the activities of Awami League will be suspended until the trial is over,' he said, referring to the trial of perpetrators of violence under the Hasina regime. 'We have not banned Awami League. ' Protests marked Yunus' visit to Chatham House. 'How can he ban the Awami League? He is not even elected. He has no authority,' said one of the Bangladeshi diaspora protesters outside, chanting, 'Yunus terrorist'. One held a placard calling for the release of former Iskcon monk Chinmoy Prabhu.

Financial sector regulators to work on universal KYC
Financial sector regulators to work on universal KYC

Economic Times

time44 minutes ago

  • Economic Times

Financial sector regulators to work on universal KYC

Financial sector regulators, led by the RBI, are developing a universal KYC framework with the CKYCR to streamline verification processes. Nirmala Sitharaman urged regulators to ensure seamless KYC experiences for citizens and expedite refunds of unclaimed amounts through district-level camps. The FSDC also discussed strengthening cybersecurity and implementing budget announcements related to KYC simplification for NRIs, PIOs, and OCIs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: Financial sector regulators, including the Reserve Bank of India , will look at a universal know your customer (KYC) framework and develop systems with the Central Know Your Customer Registry (CKYCR) to promote the inter-usability of records and avoid multiple minister Nirmala Sitharaman in a meeting of the Financial Stability and Development Council (FSDC) in Mumbai on Tuesday urged the financial sector regulators to take proactive steps to ensure that citizens have a seamless experience with the KYC processes across the financial a statement, the finance ministry said the FSDC also considered strengthening the cyber resilience framework of the Indian financial sector through a financial sector-specific cybersecurity FSDC also discussed issues relating to formulating a strategy for implementing the past decisions and the budget announcements, which included prescribing common KYC norms, simplification and digitalisation of the KYC process, including digital onboarding for non-resident Indians (NRIs), PIOs and OCIs in the Indian securities FSDC has representation from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (Irdai), the Securities and Exchange Board of India (Sebi), the Pension Fund Regulatory and Development Authority (PFRDA) and officials from the finance and corporate affairs urged the regulators and departments to expedite the process of refund to rightful owners of unclaimed amounts by holding special district-level also emphasised that interest of common citizens be kept in mind and therefore expeditiously refund the claims of the rightful claimants, the statement unclaimed amounts comprise deposits in banks, unclaimed shares and dividends managed by IEPFA and unclaimed insurance and pension funds with Irdai and PFRDA, drive is to be conducted in coordination with RBI, Sebi, MCA, PFRDA and Irdai along with banks, pension agencies and insurance finance ministry statement noted that the FSDC also deliberated on the emerging trends from the domestic and global macro-financial situation and stressed the need to be vigilant."The council recognised the need for proactive efforts to mitigate potential risks to financial stability while adopting adequate safeguards for the financial system's resilience," it said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store