Sensex Rises Nearly 500 Points, Nifty Crosses 26,000: Why Is Stock Market Rising Today?

Stock Market Updates Today, October 23: The NSE Nifty on Thursday opened higher as optimism over a Q2 earnings rebound and the return of FPI inflows look set to take the benchmark index towards a new record high level. The BSE Sensex opened nearly 500 points or 0.66% higher at 85,000, while the NSE Nifty surged 166 points or 0.62% to trade at 26,033 in the early trade. IT and auto remained the top performance sectors.
The Nifty had recorded an all-time high of 26,277.35 on September 26, 2024.
The foreign institutional investors (FIIs) extended their buying streak for the fifth consecutive session on October 21, as they bought equities worth Rs 96 crore, while domestic institutional investors (DIIs) turned net sellers, offloading equities worth over Rs 600 crore on the same day.
Key Factors Behind Gap-Up Opening Today:
India-US Trade Deal Hopes
US President Donald Trump said he spoke with Prime Minister Narendra Modi on Tuesday, with their conversation focused largely on trade. “We talked about a lot of things, but mostly the world of trade,” Trump told reporters in the Oval Office. Trump added that energy was also part of the discussion, saying Modi assured him that India would be limiting its oil purchases from Russia.
According to Mint citing three people aware of the matter, the India-US trade deal is expected to reduce American tariffs on Indian imports to 15% to 16% from 50%.
FPI Inflows
After withdrawing money on a net basis for the past three months, foreign portfolio investors (FPIs) have turned buyers with nearly Rs 6,500 crore investment in October so far, driven by strong macroeconomic factors.

The rupee on Thursday rose 13 paise to 87.80 against US dollar in early trade.
Positive Q2 Earnings
India Inc’s positive Q2 earnings have also added to investors’ optimism, according to traders.
(Details will be added shortly)