Why is stock market up today? Nifty tops 22,650, Sensex surges 1,187 points after 2-day losing streak - top reasons for rally

Stock market today: Benchmark equity indices, Nifty50 and Sensex, staged a strong recovery on Wednesday snapping a two-session losing streak, with broad-based buying lifting markets across sectors. The BSE Sensex rallied 1,186.77 points, or 1.65%, to close at 73,134.32, after witnessing sustained buying momentum through the session. Similarly, the Nifty 50 advanced 348.00 points, or 1.56%, to settle at 22,679.40, comfortably reclaiming the 22,650 mark.Improving sentiment around a possible easing of tensions in the Iran-US-Israel conflict, among other factors, boosted investor confidence.The sharp rebound at the start of the new financial year lifted the total market capitalisation of BSE-listed firms by close to Rs 10 lakh crore, taking it above Rs 425 lakh crore, according to an ET report.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “There are indications of de-escalation of the war from the statements issued by the Iranian authorities. Iranian president’s ‘openness to ending the war’ and confirmation from the Iranian foreign minister that ‘messages were exchanged with the US’’ indicate that the war might end soon. This view is getting reflected in declines in crude prices and US bond yields. The market might start discounting de-escalation earlier than the event. In the March series, the Bank Nifty suffered the worst cut with crash of around 17 %. This segment holds the promise of sharp recovery when the market bounces back. Leading private sector bank has been beaten down on non-fundamental issues. For long-term investors, this presents a buying opportunity. Many stocks across sectors were marked sharply down on March 30th due to selling triggered by tax harvesting. These stocks are due for a rebound today."Expectations of easing US-Iran war endingInvestor sentiment improved on growing expectations that the ongoing conflict could de-escalate soon. US President Donald Trump indicated that military operations against Iran could conclude within two to three weeks and suggested that Tehran need not reach a formal agreement for the situation to ease. “We’ll be leaving very soon,” Trump told reporters at the White House on Tuesday.At the same time, Iranian President Masoud Pezeshkian said the country was willing to bring the conflict to an end, provided certain conditions are met, including assurances to prevent future hostilities. Global markets advanceGlobal equities moved higher on improving sentiment around a possible easing of tensions. The rally followed a Wall Street Journal report stating that US President Donald Trump had indicated to aides his willingness to halt military operations against Iran, even if the Strait of Hormuz remained largely shut.All three major US indices posted strong gains, marking their biggest single-day rise since May 2025. The S&P 500 climbed nearly 3% on Tuesday, while the Nasdaq surged about 4%, and the Dow Jones Industrial Average advanced 2.5%.Asian markets followed suit on Wednesday. Japan’s Nikkei jumped over 4%, and South Korea’s Kospi rallied nearly 7%. Taiwan’s benchmark index rose more than 4%, while China’s Shanghai Composite added over 1%. Hong Kong’s Hang Seng also gained upwards of 2%.Valuations turn more reasonableThe sharp rebound comes after a steep decline in March that eroded significant market value. The Nifty dropped around 11% during the month, as escalating tensions in the Middle East and the extended disruption in the Strait of Hormuz pushed oil prices higher and raised concerns over India’s macroeconomic outlook.Following this correction, some analysts believe valuations have become more attractive. The Nifty has slipped below its historical averages, indicating relatively more reasonable pricing compared to earlier elevated levels. Elara Securities noted that past trends point to limited downside from current levels.Bond yields easeUS bond yields declined after a sharp rise earlier. The benchmark 10-year Treasury yield, which moves inversely to prices, fell to around 4.3%, marking its second consecutive session of decline. (Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)