Stock Market Today: Sensex Jumps 900 Points, Nifty Climbs 1.13%; 3 Top Reasons Behind the Rally

Equity benchmarks opened November with sharp gains on Monday. The Sensex surged about 900 points, and the Nifty 50 held above the 23,300 level, helped by a drop in oil prices, which fell by more than 3%, and wonderful earnings numbers reported by Reliance Industries.

The stock market today is seeing a wide buying across sectors. At around 11:39 am, the BSE Sensex was trading at 75,354.64, up 895.11 points or 1.20%, while the Nifty 50 stood at 23,314.15, up 261.05 points or 1.13%.

At the opening bell, Sensex began trading at 75,178.24, a jump of 718.71 points from Friday's close of 74,459.53, and it briefly climbed more than 950 points in early trade before the gains eased a little.

"The market's short-term texture remains positive. However, buying on dips and booking profits on rallies would be the ideal strategy at current levels. For the Nifty, 22,800 and the 20-day SMA near 22,600 would act as key support levels. Similarly, 74,000 and 73,400 would be the crucial support zones for the Sensex. As long as the indices trade above these levels, the uptrend is likely to remain intact," said Shrikant Chouhan, Head Equity Research, Kotak Neo.

Why is the stock market rising today?

The biggest push came from Reliance Industries, which reported its September-quarter results on 30 October. Consolidated profit after tax, including its share of associates and joint ventures, rose 33.8% YoY to Rs. 29,550 crore, while record quarterly revenue of Rs. 362,268 crore was up 27.8%, and the stock was among the top contributors to the index gains.

Oil is the second big reason for the surge in the stock market today. Brent crude slipped by nearly 3% to around $110 a barrel on Monday from a six-month high of about $118 on Friday, after reports of talks between Iranian and Qatari officials hinted at ending the Iran conflict.

FII buying is another factor impacting the market today.

"There are indications of FIIs turning towards India. It is too early to say that this is a trend reversal, but early signs are positive. There are many factors that might have triggered this change in stance. One, the U.S. Fed holding rate is a positive for equity markets globally. Second, the valuations in Indian markets, particularly in large caps, have become very attractive. Three, perhaps this is more important; there are clear indications of sustained momentum in economic growth in India," said Dr. V. K. Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

"The surge in credit growth (RBI) is impressive and indicative of robust growth ahead. Credit grew by 19.1% in September (YoY). Credit growth to industry is at 19.5%, and to services is at 28.3%. There are signs of improvement in industrial capex, too. Another factor is the weakening AI trade globally. This change in stance of FPIs helped Nifty reclaim the 23000 level. "He added.

Top Gainers in the Market Today

The rally in the stock market today is broad, as around 10 am, 13 of the 14 major sectoral indices were trading higher, with banks, automobiles, and metals seeing buying, and Tata Steel and NTPC were among the stocks that jumped 4% & 2% each, along with upbeat auto sales numbers.

Delhivery, Bank of Baroda, and Indian Oil also gained, while the mid-cap and small-cap indices traded higher. Other gainers included BEL, Power Grid, SBI, Asian Paints, M&M, UltraTech Cement, HUL, L&T, Bharti Airtel, and Adani Ports, mostly up 1 to 3% each.

Top Losers In the Market Today

Among the top losers on the NSE, Infosys was the biggest laggard, falling 1.39% to Rs. 1,168. ICICI Bank was second with a 1.01% drop, while Adani Ports slipped 0.82%, Sun Pharma declined 0.64%, and Axis Bank, Eicher Motors and SBI Life traded marginally lower at 0.44%, 0.42% and 0.39% respectively.

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