Sensex, Nifty: 5 reasons why stock market is rising today

Benchmark stock indices Sensex and Nifty snapped a three-day losing run on Wednesday, thanks to strong global cues and easing market valuations. Stocks tracked rally at Wall Street overnight on Fed rate cut hopes, which sent Asian shares soaring today. There is also optimism over talks on Russia-Ukraine peace deal and falling oil prices. Add to that are hopes India-US will soon reach a trade deal. Hopes of a comeback of foreign inflows on easing valuation concerns also triggered Wednesday's upmove. 

"Fundamentals indicate that the market is moving to a new high: It’s only a question of time. Investors’ response should be based on this understanding," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments. 

At 10.20, the BSE Sensex was trading 673.04 points or 0.80 per cent higher at 85,260.05. Market breadth favoured bulls, with 2,602 out of 3,759 active stocks trading higher. The NSE benchmark Nifty stood at 26,078.50, up 191.20 points or 0.74 per cent.

Ukraine has hinted that an intense diplomatic push by the US administration to end Russia's war against it could be yielding fruit. Following this, oil prices settled 1 per cent lower on Tuesday. Dow Jones climbed 1.43 per cent to 47,112.45 overnight. The broader index S&P500 also climbed 0.91 per cent to 6,765.88. 

"The best strategy for retail investors is to refrain from trading and slowly accumulate fairy-valued  high quality growth stocks which will be available at attractive valuations due to heightened volatility. Such stocks will bounce back soon. Investors’ psychological behaviour is more important in such contexts," Vijayakumar said.

On the F&O side, Ponmudi R, CEO of Enrich Money said the Nifty is hovering just above the crucial 26,000-mark. This zone continues to act as a stiff resistance, with heavy Call writing, indicating persistent selling pressure at higher levels. 

"On the downside, strong buying interest is evident around 25,900–25,850, where sizable Put positions are concentrated. As long as Nifty sustains above this support band, the undertone is expected to remain constructive. A decisive breakout above 26,100 could open the doors for a move toward 26,250–26,300, while a slip below 25,850 may trigger a deeper short-term correction toward 25,750. For now, the index is likely to trade within a range with a mild bullish bias," he said.

Kotak Institutional Equities noted that the Dalal Street is expecting strong earnings growth in a large number of sectors in the second half of the ongoing financial year (H2FY26 or December & March quarters). Foreign brokerage HSBC said Indian earnings have seen significant downgrades in the past few months, but the latest results indicate this might be over. This supports its overweight on Indian equities.

Market veteran Deven Choksey earlier this week said the stock market mood is quite upbeat and buoyant, looking a little promising than before. He said 30,000 level on Nifty by the first half of 2026 is a possibility, and the market looks set for a catch-up.