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The Indian stock market witnessed healthy buying for the third consecutive session, with the benchmark Sensex rising over 600 points; Here’s why
Why Is Stock Market Rising Today?
Indian stocks traded higher on Wednesday, led by gains in financial and IT shares, as optimism over a potential India–US trade deal and expectations of an end to the US government shutdown lifted investor sentiment.
At day’s high, around 2 PM, the BSE Sensex index was at 84,592.26 levels, rising 720.94 points or 0.86 per cent, while the Nifty50 was at 25,916.20, up 221.25 points or 0.86 per cent.
At close, BSE Sensex settled 595.19 points or 0.71 per cent higher at 84,466.51, while Nifty50 ended 180.85 points or 0.7 per cent higher at 25,875.80 levels.
Among the Sensex constituents, Tech Mahindra, TCS, Bharti Airtel, Eternal, and Infosys were the top gainers, rising between 1% and 1.5%. The Nifty IT index climbed 1.2%, boosted by gains in major IT stocks after US President Donald Trump said the country “needed skilled workers from abroad,” despite ongoing visa curbs affecting tech companies.
Broader markets also strengthened, with the Nifty Midcap and Smallcap indices rising about 0.6% each. Over the past three sessions, the Sensex has advanced more than 1,200 points (1.5%), while the Nifty has gained a similar percentage.
In three days, the Sensex has gained over 1,350 points, or 1.6 per cent, while the Nifty has also climbed by about 1.6 per cent.
Why are markets rising?
Optimism over India–US trade deal
Media reports suggest that an India–US trade agreement could be announced soon. According to a Mint report, US President Donald Trump indicated tariffs on Indian goods may be cut “very substantially,” signaling an easing of trade tensions. Currently, US tariffs on Indian imports stand at 50%. Experts say a reduction to around 15–16% would significantly benefit export-oriented sectors such as textiles, gems, and jewellery, while boosting overall market sentiment.
Likely end to US government shutdown
Investor confidence improved as the US Senate passed legislation to reopen the government after the longest shutdown in US history. The move will allow key economic data releases and reinforce expectations of a US Federal Reserve rate cut in December.
Bihar election 2025 exit polls
Exit polls from the Bihar Assembly Elections 2025 indicate the National Democratic Alliance (NDA) may retain power. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said a decisive NDA victory would support market sentiment, while a weaker showing could trigger short-term volatility.
Supportive macroeconomic backdrop
India’s resilient growth and moderate inflation have helped sustain investor confidence despite global headwinds. Goldman Sachs recently upgraded its outlook on Indian equities to “overweight” from “neutral,” citing robust earnings momentum and strong policy support for growth.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
November 12, 2025, 11:29 IST
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