5 reasons why market is rising today: Sensex jumps 500 pts, Nifty tops 24,500

Benchmark indices Sensex and Nifty jumped in Monday's morning trade after US President Donald Trump's latest social media post on Iran eased geopolitical tensions and sent oil prices tumbling. A continued reversal in the global AI trade and strong domestic earnings also lifted sentiment. Data showing Rs 20,200 crore in FPI inflows in July, after months of relentless selling, further supported the rally.

The BSE Sensex was trading at 78,634.10, up 539.46 points or 0.69 per cent. The NSE Nifty stood at 24,545.00, gaining 161.40 points or 0.66 per cent. The gains came even as AI-heavy markets remained under pressure. South Korea's Kospi plunged 5 per cent, while Japan's benchmark Nikkei fell 1.1 per cent.

Trump & peace
The US was supposed to carry on fresh attacks on Iranian infrastructure. But the US President suggested he was asked by Iran, and other Middle Eastern Countries, to hold off any attack in that "the perimeters of a deal has been agreed to."

Trump explained that this would the immediate, complete, and total opening of the Strait of Hormuz, and an end to Iran’s nuclear threat.

"Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL. The Country of Israel joins me in this commitment. Get to work, everybody, and get it DONE," Trump said.

Brent oil prices ease
Brent crude oil futures for October series fell 4.77 per cent to $83.74 a barrel level. Oil prices are off July 23 high of $94.26 level, Bloomberg data showed.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments said: “The decline in Brent crude to below $84, the good progress in monsoon in July and FIIs turning buyers are positive triggers for the market," said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

Strong Q1 results
Vijayakumar said better-than-expected credit growth, now running above 18 per cent, and the sustaining growth in auto sales numbers are good indicators of the growth momentum in the economy. The Q1 results declared so far also have surprised a bit on the upside, he said adding that "If this trend sustains, FY 27 earnings growth can be better than initial expectations."

A total of 39 Nifty companies announced their June quarter results accounting for 76 per cent of the estimated PAT for Nifty and 82 per cent of weightage in the Nifty. These Nifty companies have reported an earnings growth of 11 per cent YoY against an estimate of 7 per cent YoY. The growth was led by Reliance Industries Ltd (RIL), JSW Steel Ltd, ICICI Bank Ltd, Bajaj Finance Ltd, and Axis Bank Ltd, MOFSL said.

FPI inflows
Data available with NSDL showed FPIs bought Rs 20,200 crore worth equities in July against outflows of Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and Rs 1,17,775 crore in March.

The near-term outlook remains constructively bullish as investors price in healthy earnings momentum and strengthening macro-liquidity, said Vinit Bolinjkar - Head of Research- Ventura.
 
ITC, bank stocks gain
ITC, Bajaj Finance, private lenders HDFC Bank and ICICI Bank and Reliance Industries contributed about 300 points positively to the Sensex's rise. Infosys and TCS also contributed. The rally was broad based with 2,615 stocks rising out of 3,556 actively traded stocks so far.