1500 pts rally in Sensex; Nifty up 2 per cent: What’s driving stock market surge today? Key reasons

Sensex, Nifty Today: Indian equity markets staged a sharp rebound on Tuesday after a steep sell-off in the previous session, tracking easing geopolitical tensions and supportive global cues.

The benchmark Sensex surged as much as 1,554 points to hit an intraday high of 74,250.47, while the Nifty50 jumped 483 points to touch 22,995.85. As the session progressed, indices trimmed some gains, with the Sensex trading at 74,190.68, up 1,494 points or 2.06 per cent, and the Nifty at 22,987.45, higher by 2.11 per cent.

Broad-based buying across sectors

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The rally remained broad-based. All sectoral indices traded in the green. Nifty IT led gains, rising over 2 per cent. Auto, banking, financial services, media, PSU banks, consumer durables, and chemicals stocks gained over 1 per cent each.

Broader markets also saw strong traction. Midcap and smallcap indices advanced between 2–3 per cent, indicating improved risk appetite among investors.

Volatility cools but remains elevated

The India VIX slipped around 5 per cent but stayed above the 25 mark. This suggests that while fear has eased, traders still expect volatility in the near term.

Why markets are rising today

Easing West Asia tensions: Investor sentiment improved after signals of de-escalation in the West Asia conflict. Donald Trump said planned US strikes on Iranian power infrastructure have been paused for five days following “productive conversations” with Tehran.

Although Iran denied direct talks, reports suggest diplomatic efforts are underway. Israeli media also indicated that 9 April could be a possible timeline for ending the conflict. The softer tone has reduced fears of a prolonged war.

Cooling crude oil prices: Oil prices, though still elevated, have eased from recent highs. Brent crude was trading near $103 per barrel, down from around $110 levels earlier. Lower oil prices are positive for India as they help ease inflation and reduce pressure on the current account.

Positive global cues: Global markets supported the rally. Asian indices in Japan, South Korea, and China gained up to 2 per cent. This followed strong overnight gains of over 1 per cent in US indices like the S&P 500 and Nasdaq.

Rupee strengthens: The Indian rupee also supported sentiment. It opened 34 paise higher at 93.63 against the US dollar. A stronger currency helps reduce imported inflation and signals improving capital flows.

Why did the market rally?

• Markets gained after Donald Trump announced a 5-day war ceasefire
• After a gap-up opening, markets turned sluggish and even fell 275 points from the top
• Media reports suggested Iran is ready for talks
• This triggered a sharp rebound in the market
• Nifty 50 crossed 23,000 and Bank Nifty crossed 52,700
• Market sentiment now depends on signals coming from Iran
• Crude oil remained stable near $97
• The rupee strengthened by 19 paise
• India VIX fell 7 per cent

Key levels to watch now

• The screen indicates today’s move is largely short covering
• Selling pressure from FIIs has reduced during weekly expiry
• Buying after the first dip boosted confidence
• Market moved from day low to day high in a strong rebound
• Strong support for Nifty seen in the 22,625–22,850 range
• Next target for Nifty: 23,065–23,150
• Above this, 23,250–23,400 is a strong resistance zone
• Bank Nifty support seen in 51,825–52,050 range
• Next target for Bank Nifty: 53,100–53,450
• Above this, 53,675–53,875 is profit-booking zone
• For intraday long positions: keep stop loss at Nifty 22,800 and Bank Nifty 52,300
• Closing above 22,850 (Nifty) and 52,675 (Bank Nifty) is positive
• Strong momentum if Nifty closes above 23,115 and Bank Nifty above 53,450

What should traders do?

• Risk has reduced slightly but is not fully over
• Large-cap stocks remain safer for trading
• Keep positions light for intraday and overnight
• Until official confirmation from Iran, war risks remain
• Crude oil needs to fall below $90 for further comfort