Sensex Jumps Over 700 Points: Why the Stock Market Is Rising Today

Indian equity markets staged a strong rebound on Thursday, with benchmark indices posting sharp gains in early trade as investor sentiment improved after several uncertain sessions. Positive global cues, easing trade tensions, and short-covering activity combined to push markets firmly into the green, while investors also positioned themselves ahead of key global data and domestic Q3 earnings.

As of 9:46 am, the S&P BSE Sensex was trading 785.92 points higher at 82,695.55, while the NSE Nifty50 climbed 251.60 points to 25,409.10. The strong opening indicated a clear willingness among investors to take fresh positions following recent volatility.

Global Relief Sparks Early Rally

The primary trigger behind today’s rally was relief across global markets. Overnight, US equities recovered sharply after President Donald Trump announced he would not proceed with fresh tariffs on European allies. This eased fears of an escalating global trade war, which had weighed heavily on equities in recent sessions.

Asian markets followed Wall Street’s positive lead. Indices in Japan, South Korea, and Australia advanced after Trump spoke about working toward a “framework” agreement with NATO over Greenland, reducing geopolitical anxiety. A key regional index was on track to snap a three-day losing streak.

Although European markets remained under pressure due to lingering concerns around Greenland and trade policy, the overall global mood turned constructive enough to lift risk appetite in emerging markets like India.

US–India Trade Hopes Add Support

Investor confidence also received a boost from comments suggesting progress on a potential US–India trade deal. According to a report quoted by Moneycontrol, Trump indicated that the US was “going to have a good deal” with India, raising hopes of stronger bilateral trade ties.

Market participants believe that any positive movement on trade between the world’s largest and fifth-largest economies could provide long-term support to Indian equities, particularly export-oriented sectors and manufacturing-linked stocks.

Short-Covering Fuels Momentum

Experts said today’s sharp upmove was also amplified by short-covering after recent declines. Geojit Investments Limited Chief Investment Strategist V K Vijayakumar described the rally as a classic relief move.

“In yet another classic TACO (Trump Again Chickens Out), President Trump has withdrawn from his threat to annex Greenland by force. More importantly, the decision to refrain from imposing tariffs on Europe removes the threat of a US–Europe trade war, which had been dragging markets down,” Vijayakumar said.

He added that market positioning favoured a bounce. “There are about two lakh short contracts in the market, and the current setup is ideal for short-covering, which can make the relief rally stronger,” he noted.

Earnings Concerns Take a Back Seat

While corporate earnings have shown some pressure, particularly due to higher provisions linked to new labour code commitments, analysts believe the market is willing to look past this as a one-time impact.

Vijayakumar pointed out that recent results from Eternal stood out, with better-than-expected revenue and profit growth in its quick-commerce business, helping sentiment around the broader earnings season.

Broad-Based Buying Across Sectors

The rally was broad-based, with all major sectoral indices trading higher. Within the Sensex pack, Eternal led the gains, jumping 6.51%, followed by Mahindra & Mahindra up 1.87%, Adani Ports and SEZ gaining 1.83%, and UltraTech Cement rising 1.26%. Bharat Electronics added 1.06%.

Notably, there were no major losers in early trade, reflecting the absence of selling pressure. Broader markets also outperformed, with the Nifty Midcap 100 rising 1.43% and the Nifty Smallcap 100 gaining 1.12%.

Sectorally, PSU banks led the charge, with the Nifty PSU Bank index jumping 2.06%. Auto, IT, pharma, metals, media, and oil & gas stocks all traded higher, underlining the strength of the move.

Volatility Eases

Market fear indicators also cooled. India VIX, the volatility index, fell 3.01%, signalling that investors were becoming more comfortable taking on risk as global uncertainties eased.

Technical View on Nifty

From a technical standpoint, analysts cautioned that key resistance levels remain. Anand James, Chief Market Strategist at Geojit Investments, said the Nifty had earlier struggled near the 25,300 mark.

“The doji formed below the lower Bollinger Band, with the 200-day SMA nearby, could allow a period of consolidation. A sustained move above 25,300 could open the door for upside targets of 25,470–25,580,” he said.

Events and Earnings to Watch

Investors will keep a close eye on key global data releases later in the day, including Japan’s trade balance figures and US GDP growth numbers. On the domestic front, several companies are scheduled to announce their Q3 results, including InterGlobe Aviation, Indian Bank, DLF, Bandhan Bank, and Adani group companies.

The strong opening reflects a combination of global relief, optimism around US–India trade ties, and technical short-covering. The sustainability of the rally will depend on how global cues evolve and how corporate earnings shape sentiment through the rest of the session.