Stock Market Today: These are the 6 reasons due to which the stock market ran faster in the last, there was a profit of 2 lakh crores.

News Topical, Digital Desk : The stock market traded strongly for the second consecutive day on Thursday. Metal, pharma, and IT stocks saw strong buying, boosting investor enthusiasm. The return of foreign investors (FIIs), positive signals from global markets, and a decline in Brent crude also boosted the market's momentum. Experts believe that investor expectations remain strong ahead of the second quarter (Q2) results.

Let's explore the six major reasons that boosted the market's enthusiasm today –

Market strength boosted by the return of FIIs
Foreign institutional investors (FIIs) bought shares in the Indian markets for the second consecutive day. On Wednesday, FIIs purchased shares worth ₹81.28 crore, while on Tuesday they recorded a net inflow of ₹1,440.66 crore. This trend indicates that foreign funds are once again reposing confidence in Indian equities.

Heavy buying in metal and pharma stocks.
The metal and pharma sectors led today's rally. The Nifty Metal Index rose 1.6%, breaking a three-day losing streak. Stocks like Tata Steel and Hindustan Copper jumped up to 4.5%. Base metal prices rose on news of supply disruptions at Indonesia's Freeport Grasberg mine. Pharma stocks also rose up to 4%. According to reports, the US has backed off from plans to impose tariffs on generic drugs, a major positive signal for Indian pharma exporters.

Expectations for the Q2 earnings season:
Investors are hoping that the September quarter results will support the market. Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, says, "The IT sector has shown some improvement, but headwinds remain. Q2 results may be moderate, but demand for auto and consumer electronics could support growth in Q3."

Global cues were positive
. Asian markets remained firm. Japan's Nikkei 225 and Hong Kong's Hang Seng index were trading higher.
US markets closed higher on Wednesday, and Wall Street futures also indicated a positive opening.

Crude oil prices fell
Brent crude fell 0.5% to $65.92 per barrel, providing relief to India from import costs and inflationary pressures.

Relief from Fed minutes:
Minutes from the latest US Federal Reserve meeting indicated that officials are in favor of cutting interest rates this year. Lower US rates are generally beneficial for emerging markets like India as they increase foreign fund inflows.

According to Anand James, Chief Market Strategist at Geojit Financial Services, "After Nifty's rebound from the 25,030–25,000 support level, it is now important to cross 25,182–25,225. If this level is broken, a rally up to 25,460 is possible, otherwise a further decline towards 24,982 is possible."
 

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