Why is market rising today? Sensex soars 1,300 pts, Nifty above 25,400 as explosive rally continues. 4 factors behind Rs 6 lakh cr gains

The market bulls further strengthened their grip on Dalal Street as Sensex and Nifty rallied more than 1% each on Wednesday, extending sharp gains recorded this month so far, as FII buying and other key factors pushed market higher up.

At 9.45 AM, Sensex rallied over 1,300 points to 82,486 while Nifty 50 jumped more than 350 points to trade above the 25,400 level. The sharp gains added nearly Rs 6 lakh crore to the total market capitalisation of all stocks listed on NSE, pulling it up above Rs 513 lakh crore.

IndiGo shares rose 5%, while shares of M&M, HDFC Bank, SBI, Bharti Airtel, Power Grid, Eternal, Asian Paints, Axis Bank, ICICI Bank and HCL Tech jumped up to 3% to lead gains on Sensex. Bucking the trend, Titan shares slipped into the red with marginal losses to emerge as the only loser on the benchmark index.


The market rally was broad-based, as Nifty Smallcap 250 index gained more than 1% while Nifty Midcap 100 index climbed nearly a percent. As a result, the overall market breadth remained sharply positive, with NSE seeing 2,531 advances against 549 declines while 114 stocks remained unchanged.

Among the sectoral indices, Nifty PSU Bank jumped around 2% to lead gains while Nifty Pharma slipped into the red. India VIX, which measures volatility in market, however remained elevated near 18.

Here are 4 key factors boosting the market today:

1) FII buying continues

The incessant FII purchases seen this month so far has been boosting market sentiment after a sharp selloff earlier this year spooked investors and rattled the market. Foreign investors remained net buyers of Indian equities on Monday, ahead of the market holiday on Tuesday, buying shares worth over Rs 7,212 crore, according to provisional data on NSE.

Overall, FII have remained net buyers on Dalal Street everyday in November so far, extending the trend for seven consecutive session on Monday. Foreign portfolio investors have poured $8.2 billion into Indian equities since mid-October, including $5.8 billion in just six trading sessions in November. The inflows mark a sharp reversal after FIIs withdrew around $31 billion from Indian equities during the first 10 months of 2026.

Also Read |FIIs are back with a bang but why are stocks from only 2 sectors their favourites?

2) Strong Q2 earnings

Analysts have been highlighting better-than-expected Q2 earnings from India Inc. as another major factor boosting market sentiment. “The near 24% earnings growth in Nifty 50 in Q2 is a 12 quarter high and has compressed the forward PE for Nifty 50 to fair levels,” said V K Vijayakumar, Chief Investment Strategist at Geojit Investments.

Around 181 companies reported at least a doubling of net profit from a year earlier during the July-September quarter of the ongoing financial year. An analysis of quarterly results data compiled by Ace Equity shows that companies across banking, metals, pharmaceuticals, energy, consumer businesses and industrial manufacturing reported YoY profit growth of more than 100% in the second quarter of FY27.

Also Read | Up to 12,000% growth! 181 companies more than doubled profits in Q2 earnings boom for India Inc

3) Rupee rises

The Indian rupee opened 0.2% higher at 93.72 against the US dollar, as compared to the previous close of 93.9275. The Indian currency has turned out to be one of Asia's best-performing currencies in FY27 after India's emergence as a natural hedge against AI-heavy trades lifted the local unit in comparison with South Korea's won and the Chinese renminbi, which were seen as the beneficiaries of artificial intelligence-themed investments.

A retreat of nearly a fifth in crude oil prices from their recent highs also benefited India, experts said, as the rupee quickly climbed the leaderboard, having populated the list of relative stragglers against the dollar through the first two quarters of FY27.

4) Easing oil prices

Oil prices edged higher today but still remain sharply lower than the above $100 per levels seen in most of this year so far. The easing comes after US President Donald Trump's statement that he believes the war in Iran "is effectively over."

"Iran militarily is effectively over. We are just keeping it the status quo,” Trump said on Monday after meeting with Qatar's prime minister. The US President added that Iran has been "decapitated" but he is still looking to make sure there is a long-term solution to ensuring that Iran's nuclear programme is defanged. "The military action doesn't seem to be a very necessary thing, but we are locked and loaded, ready to go for any reason that changes," Trump said.

What lies ahead for Dalal Street?

Nifty 50 has surged by around 9% in just six trading days of this month. This surge was triggered mainly by the aggressive FII buying of Rs 53,170 crores, so far, this month. The dramatic change in the market environment was triggered by positive global clues for India from the weakening of the AI trade, said V K Vijayakumar, Chief Investment Strategist at Geojit Investments. He however pointed that the real fundamental support to the rally has come from the better-than-expected Q2 results.

“Given the new favourable environment for the Indian market, FIIs are likely to continue buying, imparting resilience to the frontline stocks in banking/financials, telecom, capital goods, select auto and pharmaceutical majors. This rally, which has more steam left, will be led again by largecaps,” Vijayakumar said.

The analyst added that the drop in Brent crude futures to $92 per barrel is an additional macro relief for India. On the negative side, he warned that the rise in US inflation and the coming inevitable rate hikes by the Fed has pushed the 10-year US bond yields back to 5%. “This, and profit booking by the DIIs will restrain the rally a bit."

Also read | US stocks: US market falls as hot inflation, hawkish Fed fuel rate-hike fears

Technical view on Nifty

While the 24,860-24,775 region held through Monday’s slippages, keeping the 25,400-25,700 trajectory intact, Anand James, Chief Market Strategist at Geojit Investments will go in today with downside marker pushed higher to 24,926.

“Our upside expectation has also been moderated to 25,327 for the time being, with higher prospects of mean-reversion down moves,” the technical analyst said.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.