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The Indian stock market snapped its two-day losing run on Wednesday, April 1, with the Sensex and the Nifty 50 ending with strong gains, mirroring the global trend.

The Sensex ended 1,187 points, or 1.65%, higher at 73,134.32, while the NSE counterpart Nifty 50 rose by 348 points, or 1.56%, to settle at 22,679.40. The mid and small-cap indices on the BSE surged up to 3%.

Among the sectoral indices, Nifty PSU Bank and Media indices jumped 3.7% each. Metal, IT, and Auto indices gained 2% each. The Nifty Bank index jumped 2.33%.

Investors earned ₹10 lakh crore in a single session as the overall market capitalisation of BSE-listed firms rose to ₹422 lakh crore from ₹412 lakh crore in the previous session.

Let's take a look at 5 key factors behind the rise in the Indian stock market today:

Markets are cheering emerging signs of a potential end to the West Asian conflict.

According to reports, US President Donald Trump has said Washington could end its military attacks on Iran within two to three weeks. Tehran, the US President said, did not have to make a deal as a prerequisite for the war to end.

The US-Iran war, which began on 28 February, has driven crude oil prices to multi-year highs, raising concerns about its impact on global growth and inflation dynamics and dealing a blow to market sentiment.

"There are indications of de-escalation of the war from the statements issued by the Iranian authorities. The Iranian president’s openness to ending the war and the Iranian foreign minister's confirmation that ‘messages were exchanged with the U.S.’ indicate that the war might end soon. The market might start discounting de-escalation earlier than the event," VK Vijayakumar, Chief Investment Strategist, Geojit Investments, noted.

Positive global stock market sentiment spilt into the domestic market sentiment. Among the Asian peers, Korea's Kospi surged almost 8%, while Japan's Nikkei jumped 4.61% amid easing geopolitical risks and better-than-expected March macroeconomic data.

In Europe, the UK's FTSE, Germany's DAX and France's CAC 40 rose 2% durin gthe session.

Overnight, Nasdaq surged 4% while the S&P 500 jumped 3% on hopes of an end to the US-Iran conflict.

The US dollar index fell about 0.50%, while the US 10-year bond yield eased about 1% to 4.27%. A decline in the dollar and bond yields is positive for emerging markets like India as it improves the prospects of foreign capital inflows.

The Nifty 50 crashed 11.3% in March, extending losses to the fourth consecutive month. The sharp decline in the index has brought valuations near the long-term average, offering many blue-chip stocks at an attractive price.

With market sentiment improvement amid positive signals on the front of the West Asian conflict, investors appear to be engaged in value buying to reap the benefits of a potential market uptrend ahead.

According to Shrikant Chouhan, Head Equity Research, Kotak Securities, the short-term trend of the market is still on the weaker side. However, due to temporary oversold conditions, there was a pullback rally.

"For traders, 22,500 and 22,300 would act as key support zones. As long as the market is trading above these levels, the pullback move could continue on the higher side, with 22,900–23,000 acting as immediate resistance zones for the bulls," said Chouhan.

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stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.Nishant is a market reporter at Mint, where he holds the official designation of Principal Correspondent – Markets. He has been closely tracking the Indian stock market as well as major global stock markets along with the broader macroeconomic trends for a decade.

He is obsessed with breaking down complex financial and economic concepts into clear and engaging stories. He focuses not only on what is happening in the markets, but also why it matters.

His coverage includes stock market trends, sector rotations, monetary and fiscal policy developments, inflation, growth data, and personal finance strategies.

With nearly 10 years of experience in covering financial markets, Nishant has covered bull markets, corrections, policy transitions, and macro developments that has equipped him with a deep understanding of how domestic and global forces shape markets and affect investments.

He regularly interviews market veterans, fund managers, economists, policymakers, and corporate leaders to provide readers with a 360-degree view of market dynamics and the broader economic landscape.

Before joining Mint, Nishant worked with some of India’s most respected business newsrooms, including The Economic Times and Moneycontrol, where he reported extensively on the stock market, corporate earnings, macroeconomic trends, GDP, inflation, monetary policies of the RBI and the US Federal Reserve, bonds, and currencies.

Apart from economics and investing, he has interests in geopolitics and emerging technologies, such as AI.

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