News Topical, Digital Desk : The Indian stock market started the week on a strong note. Positive sentiment regarding the interim trade framework between India and the US and strong signals from Asian markets led to gains in the Sensex and Nifty. The BSE Sensex rose 445.83 points, or 0.53 percent, to 84,026.23. The NSE Nifty gained 154.10 points, or 0.6 percent, to trade at 25,847.80.
Why did the stock market jump? (Key factors driving market rally)
India-US trade framework- The biggest reason behind the rise in the stock market was the India-US trade framework. On Friday, India and America announced an interim trade framework, which aims to reduce tariffs, strengthen energy cooperation and further economic partnership. HDFC Securities' Head of Prime Research Devraj Vakil said that the ten-month-long tariff dispute between India and America has ended and America has reduced tariffs on Indian products. He said that India has protected sensitive agricultural sectors and has committed to buy some products from America in the next five years, which includes energy, aircraft and defense technology.
SBI's quarterly results also supported the market. Shares of State Bank of India, the country's largest bank, rose nearly 6% after the bank reported better-than-expected profits in the third quarter and raised credit growth guidance for FY26.
FII buying - Foreign institutional investors' buying was also positive for the market. On Friday, FIIs made net purchases of ₹1,950.77 crore in the equity market. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that there has been a change in foreign fund flows so far in February, and FIIs have become net buyers. He added that currency movements also played a role in improving sentiment.
Positive global cues - Global cues were also strong. In Asian markets, Japan's Nikkei 225, South Korea's Kospi, Shanghai's SSE Composite, and Hong Kong's Hang Seng Index traded in the green. US markets also closed with gains of more than 2% on Friday.
Crude oil price - Furthermore, a drop in crude oil prices also provided relief to the Indian stock market. Brent crude fell 0.94 percent to $67.41 per barrel. Lower crude oil prices help ease inflationary pressures and reduce import bills, supporting the equity market.
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