- By Aditya Pratap Singh
- Thu, 05 Mar 2026 04:48 PM (IST)
- Source:JND
Key Reasons Behind Stock Market Rally Today: After witnessing the huge decline in the past four sessions--especially in the two sessions of this week--the Indian stock market soared sharply on Thursday to settle over a per cent high. The BSE Sensex closed at 80,015.90, up 899.71 points or 1.14 per cent, while Nifty50 ended the session 285 points or 1.17 per cent at 24,765.90.
The domestic market witnessed selling pressure in the last two sessions this week on the back of weak global cues, rising oil prices due to the ongoing war between US-Iran-Israel in the Middle East.
Adani Ports, L&T, NTPC, Reliance, BEL, Indigo, Mahindra and Mahindra, PowerGrid, Maruti Suzuki, Tata Steel and Bajaj Finance were top gainers from the Sensex stocks. Tech Mahindra, HCL Tech, Hindustan Unilever, and ICICI Bank traded lower.
What Drives Stock Market Today
Broad Bases Buying: On the back of positive global cues, the mid- and small-cap stocks outperformed large caps.
"Investor sentiment improved after comments from the US deputy secretary suggested that an India–US trade deal may be nearing completion," said Vinod Nair, Head of Research, Geojit Investments Limited.
Value Buying: After having strong bearish sentiment for at least three trading sessions, investors grab the opportunity to buy stocks at lower prices. Metals, consumer durables, realty, and auto sector stocks are witnessing decent buying interest.
News Report On War: According to Vinod Nair, market momentum strengthened in the closing hour after a report emerged claiming that Iran had conditionally offered to abandon its nuclear program, raising hopes of de-escalation in the ongoing US/Israel–Iran tensions.
"Today's session reflected a sentiment-driven relief rally supported by easing geopolitical fears and cooling volatility, though the market still faces critical resistance zones ahead that will determine whether the rebound can evolve into a sustained trend reversal," said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
Rupee Trades Stronger
The Indian currency, 'Rupee', traded stronger at 91.50, gaining 0.55, indicating possible intervention after the sharp weakness witnessed in recent sessions.
"The recovery suggests efforts to stabilise the currency amid rising volatility driven by geopolitical tensions and commodity price movements," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
"Going ahead, dollar index movement and developments in the West Asia conflict will remain key drivers for the rupee as FII’s position gets influenced on Crude rates," Trivedi added.