Stock Market: Sensex Soars 825 Points; What Fueled Share Market Rally Today

Indian stock market continued the gaining momentum for the second consecutive day as key domestic indices--Sensex, Nifty--settled over one per cent higher. Sensex, BSE's 30-share index, soared 825.57 points or 1.08 per cent to close at 77,569.39. Nifty50 ended the session at 24,206.90, up 244.10 points or 1.02 per cent.

What Fueled Rally Today

Buying In Heavyweights: The buying momentum in blue-chip stocks helped today's rally in the stock market. Heavyweights Reliance Industries, ICICI Bank and HDFC Bank traded significantly higher.

Sustained Rally In IT Stocks: IT stocks continued to rally for the second day. Top IT stocks, including TCS, Infosys, Tech Mahindra, and Wipro, rose during the session.

Crude Price: Easing crude oil prices also lifted investors' sentiment--especially as tension in the Middle East escalated again.

What Went Well: Expert's View

Vinod Nair, Head of Research, Geojit Investments Limited, said after a brief interim correction, the market appears to be on track for a strong recovery.

"Positive business updates from banks, along with a constructive outlook for the IT sector driven by in-line estimates, a potential rebound in global spending, and AI-related opportunities, have set the stage for an optimistic start to the Q1 earnings season. A continuation of better-than-expected Q1 results should help alleviate concerns about future earnings growth," he added.

"Better-than-expected earnings from Tata Consultancy Services (TCS) lifted sentiment across the IT sector, while strong buying interest in banking and realty stocks, along with gains in metals, oil & gas, and defence shares, further underpinned the market's upward momentum," said Ponmudi R, CEO of Enrich Money.

However, the underlying market sentiment remained cautious as the continuing exchange of attacks between the U.S. and Iran continued to fuel geopolitical uncertainty, he added.