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Why the Stock Market is Rising Today: 4 Reasons for Today's Surge
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Stock Market Today: The Indian Stock Market today has seen a significant rise with Nifty closed above 23200 and Sensex 1000 points. This rise is backed by gains in Banking and IT Stocks. Let’s explore 4 key factors for today’s rise in Nifty and Sensex.
Why the Stock Market is Rising Today?
1. IT Stocks Lead The Market Rally
The Nifty IT index, which had lost 16.4% in 2025, has now recovered with a gain of over 2% today, spearheading the market rally.
HCL Technologies, Tata Consultancy Services, Wipro, and Infosys, some of the major IT revenue-generating companies based in the U.S., witnessed heavy buying interest. These stocks were around 2% higher. Together, these IT stocks accounted for almost 200 points on Sensex as a result.
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2. Fed Hints At Two Rate Cuts in 2025
As expected, the U.S. Federal Reserve left rates unchanged and continues on their path of two quarter-point cuts by the end of 2025, as previously foretold in December.
But in light of President Trump's tariffs, the Fed increased its inflation forecast and decreased its economic growth forecast.
Lower U.S. interest rates harm the dollar and Treasury yield, which makes foreign direct investment in developing nations like India comparatively more alluring.
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3. Lower U.S. Bond Yields And Dollar Sentiment Positively Impact
In mid-February, the yield on the 10-year US Treasury note fell from almost 4.5% to 4.245%, and the yield on the 2-year bond fell from 4.28% to 3.993%. The US dollar index, on the other hand, was at 103.36, which nevertheless gave emerging markets like India some hope.
4. Indian Equities Boosted by Positive Sentiment in Global Markets
Following robust gains on Wall Street, Indian stocks rose in value due to the surge in Asian markets on Thursday. Investor sentiment was encouraged after the US Federal Reserve reiterated its expectations of two rate cuts during the year while downplaying the impact of Trump’s tariffs.
US futures continued to increase with the US dollar index, fuelling stock prices. Australian stocks increased by 1%, and the Nasdaq and S&P 500 futures rose by 0.62% and 0.46% respectively.
Conclusion: Why the Stock Market is rising Today
IT stocks showed strong gains today, thereby leading the rise in the stock market on signals from the U.S. Fed about possible rate cuts, lower U.S. bond yields along global market optimism. The investor confidence in growth possibilities has been further backed by foreign investments too. In general, the mood in the market is upbeat.
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