On Monday, February 23, the Indian stock market began trading with strength. In the initial session, the Sensex registered a gain of over 600 points, while the Nifty 50 also crossed the 25,750 level.
Investors engaged in aggressive buying in the market, causing the major indices to rise rapidly. Let’s understand the key reasons behind this surge.
1. News from America boosted market confidence
A significant piece of news from the global market strengthened the sentiment of the domestic stock market. According to reports, the Supreme Court of the United States decided to revoke the import tariffs imposed by US President Donald Trump. Following this decision, a positive trend was observed in the European and American markets.
Experts believe that this step signaled relief for sectors related to global demand and supply chains. Although Trump later announced an increase in the tariff rate from 10 percent to 15 percent, investor confidence remained intact.
The effect of this positive environment was also seen in the Indian market, with shares of textile and export-related companies registering a surge of 2 to 8 percent.
2. Support from strong global markets
The surge in stock markets worldwide also had an impact on the Indian market. In Asian markets, particularly South Korea’s KOSPI climbed by about 1.5 percent. Additionally, American markets also registered a gain of approximately 1 percent on Friday, which boosted investor morale.
Although markets in China and Japan remained closed due to holidays, positive signals from other major markets provided strength to the domestic market.
3. Softening of crude oil prices
At the start of the week, crude oil prices saw a decline, which supported market sentiment. The possibility of the US and Iran reaching the third round of nuclear talks has signaled a reduction in geopolitical tensions. This is expected to decrease global uncertainty.
During this period, Brent Crude Futures fell by about 75 cents, or 1.05 percent, to $71.01 per barrel. Experts state that softening crude oil prices are considered positive for large importing countries like India. Cheaper oil can reduce inflationary pressure, which is likely to provide relief to the economy.
