Why is the stock market rising today? Five factors behind Sensex, Nifty rally

Résumé détaillé

The Sensex and Nifty surged to eight-month highs in Wednesday's early trade. Foreign inflows, softer crude, stronger earnings and shifting global sentiment supported the rally.

After a day's break, stock markets returned to trading with a strong rally on Wednesday. The Sensex and Nifty jumped in early trade, with both benchmarks touching their highest levels in eight months.

The gains are not being driven by just one development. Foreign investors have returned in a big way, crude oil prices have eased from recent highs, companies have reported better-than-expected earnings and global investors are reassessing their exposure to artificial intelligence stocks. Together, these factors have improved the outlook for Indian equities.

At around 9:48 am, the Sensex was up 1,360.61 points, or 1.68%, at 82,467.26. The Nifty had gained 357.45 points, or 1.43%, to trade at 25,402.10.

One of the biggest reasons behind the market's recovery is the return of foreign institutional investors (FIIs).

Foreign investors had been a major source of pressure on Indian equities earlier this year. Their sustained selling had weighed on benchmark indices, even as domestic institutions stepped in to support the market.

That trend has now changed sharply. FIIs have been net buyers in the cash market in each of the six trading sessions from November 2 to November 9.

The buying has also gathered pace over the period. On November 2, foreign investors bought equities worth Rs 3,114.68 crore. This increased to Rs 6,836.81 crore on November 3 and Rs 7,284.03 crore on November 4.

The pace picked up further on November 5, when FIIs made net purchases worth Rs 14,974.68 crore. They bought another Rs 13,749.82 crore on November 6, followed by purchases worth Rs 7,212.22 crore on November 9.

That takes their total net buying in the cash market to around Rs 53,170 crore over these six trading sessions, according to the figures shared. The scale of these purchases has provided a significant boost to market sentiment.

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