Sensex Soars 1,310 Points, Nifty Leaps 429 points — 5 Big Reasons Behind Today’s Rally

Stock Market Closing Bell Today: Indian stock markets closed sharply higher on Friday, boosted by positive global cues and the U.S. decision to suspend additional tariffs on India. Both benchmark indices – the Nifty50 and Sensex – surged as investors reacted positively to the news.

The BSE Sensex jumped 1,310.11 points, or 1.77%, to close at 75,157.26. Meanwhile, the Nifty50 rose 429.40 points, or 1.92%, to end the day at 22,828.55. Market breadth was strong, with 46 out of 50 Nifty stocks advancing. On the Sensex, 28 out of 30 stocks ended in the green, showing widespread buying interest.

Here are five reasons why the stock market went up today:

US Tariff Pause

Investor mood improved after the U.S. announced a 90-day suspension of an additional 26% tariffs on Indian exports. This relief is part of a broader decision by U.S. President Donald Trump to delay tariffs for 75 countries, including India, until July 9. The move helped reduce fears about disruptions to Indian exports like shrimp and steel and gave markets a much-needed boost.

Weak Dollar  

The U.S. dollar continued to weaken, which is typically good for emerging markets like India. A weaker dollar encourages foreign investors to buy Indian stocks and also reduces pressure on the rupee.

On Friday, the dollar index fell below 100 for the first time since July 2023, while it hit a 10-year low against the Swiss franc and a six-month low against the yen.

Also Read: Infosys, HCL Tech, Wipro Surge Up To 2% As IT Stocks Zoom On Trump Tariff Pause - Should You Buy?

Rally Across Sectors

The rally was not limited to one area – it was broad-based across sectors. The Nifty Metal index surged over 4%, helped by the weaker dollar. Pharma stocks also saw strong buying, with the Nifty Pharma index gaining more than 2.43%.

Other sectors like Auto rose over 2%, while Financial Services, IT, and Oil & Gas gained between 1% and 2%. India's Volatility Index (India VIX) dropped by 6.17% to 20.11, indicating lower fear and better investor confidence.

Crude Oil Prices

Oil prices continued to fall for the second straight day, helping ease concerns about inflation. Brent crude dropped to $63.02 per barrel, while U.S. West Texas Intermediate (WTI) crude fell to $59.71. Lower oil prices are good for India, as the country imports most of its oil, and cheaper crude reduces the import bill.

Rupee Strong

The Indian rupee saw a big jump, gaining 51 paise to close at Rs 86.17 against the U.S. dollar – its best weekly performance in two years. The rupee had opened at Rs 86.22, already up 46 paise from the previous close, and kept rising thanks to strong domestic markets, the weak U.S. dollar, and falling crude oil prices.

Top Gainers And Losers

On the Sensex, Tata Steel was the top gainer, jumping 4.91% to Rs 133.45. Other big gainers included Power Grid (up 3.72%), NTPC (3.25%), Kotak Mahindra Bank (2.85%), and Reliance Industries (2.84%).

Adani Ports, Eicher Motors, Bajaj Finserv, Bharti Airtel, and HDFC Bank also rose over 2%. Stocks like Bajaj Finance, M&M, and Sun Pharma gained close to 2%, while Tata Motors, Titan, L&T, and SBI were up between 1.66% and 2.07%.

Other notable gainers included IndusInd Bank (1.53%), ITC (1.36%), Ultratech Cement and Maruti (1.23% each), HCL Tech (1.04%), and ICICI Bank (0.98%). Stocks like Tech Mahindra, Axis Bank, Nestle India, HUL, and Infosys posted smaller gains under 1%.

On the downside, TCS lost 0.43%, while Asian Paints was the biggest laggard, falling 0.76%.