Sensex Rises Over 500 Points, Nifty Reclaims 24,200: Why Is The Market Rising?

Indian equity markets moved higher in early trade on Tuesday, March 10, after two consecutive sessions of losses, supported by easing crude oil prices, a rebound in the rupee and improving global cues following developments related to the West Asia conflict.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The BSE Sensex rose more than 950 points during early trading to touch an intraday high of 78,526.25, while the NSE Nifty 50 climbed more than 1% to reach 24,303.80, according to exchange data.

However, the indices later trimmed part of the gains. Around 10:20 a.m., the Sensex was trading higher by 507 points or 0.65% at 78,073, while the Nifty 50 was up 173 points or 0.72% at 24,201.

The market capitalisation of companies listed on the Bombay Stock Exchange increased to about ₹445 lakh crore from ₹441 lakh crore in the previous session, indicating a rise of roughly ₹4 lakh crore in investor wealth.
Easing Crude Oil Prices Support Sentiment

Global crude oil prices declined during morning trade after earlier surging amid geopolitical tensions in West Asia.

Brent crude traded nearly 6% lower at around $99 per barrel at about 9:15 a.m. IST, according to market data cited by Reuters.

The decline followed comments by U.S. President Donald Trump indicating that the conflict involving the United States, Israel, and Iran could end earlier than previously expected. Reuters reported that the U.S. administration is considering steps such as easing certain oil-related sanctions and escorting oil tankers through the Strait of Hormuz to maintain supply.

The Group of Seven (G7) countries also stated that they are prepared to take measures, including releasing strategic reserves, to support global energy supplies, according to Reuters.

Rupee Rebounds From Record Low

The Indian rupee strengthened in early trade after falling to a record low in the previous session.

According to PTI, the rupee rose 23 paise to 91.98 against the U.S. dollar in early trading on Tuesday.

Data cited by Bloomberg showed that the rupee had settled at 92.33 on Monday after touching an all-time low of 92.3575 against the U.S. dollar amid rising crude oil prices and geopolitical tensions.
Global Market Cues Improve

Global market indicators also supported domestic equities.

The U.S. dollar index declined by about 0.5%, while the benchmark 10-year U.S. Treasury yield eased to around 4% from about 4.2% in the previous session, according to Reuters.

Lower bond yields and a weaker dollar typically signal reduced demand for safe-haven assets, reflecting improved risk appetite in global financial markets.

The recovery in Indian equities follows a sharp decline on Monday when the Sensex fell 1,352.74 points or 1.71% and the Nifty 50 declined 422.40 points or 1.73%, according to exchange data.