Sensex jumps 750 points, Nifty 50 reclaims 25,050; why is Indian stock market rising today? Explained with 5 key factors

Indian stock market witnessed healthy gains for the second consecutive session on Monday, May 26, with the benchmark Sensex rising over 750 points and the Nifty 50 reclaiming 25,050.

The Sensex opened at 81,928.95 against its previous close of 81,721.08 and jumped over 750 points, or almost 1 per cent, to an intraday high of 82,492.24. The NSE counterpart Nifty 50 opened at 24,919.35 against its previous close of 24,853.15 and rose nearly 1 per cent to an intraday high of 25,079.20.

The BSE Midcap and Smallcap indices also rose by almost a per cent during the session.

Around 10 AM, the Sensex was 692 points, or 0.85 per cent, up at 82,414, while the Nifty 50 was trading 200 points, or 0.80 per cent, higher at 25,053.

The overall market capitalisation of BSE-listed firms rose to over ₹445 lakh crore from nearly ₹442 lakh crore in the previous session, making investors richer by over ₹3 lakh crore in a session.

Why is the Indian stock market rising today?

Here are the five key factors that seem to have boosted domestic market sentiment:

1. Trump delays EU tariffs

Giving huge relief to the European Union (EU), US President Donald Trump postponed the planned 50 per cent tariff on imports from the bloc from the original date of June 1 to July 9.

As per media reports, Trump extended the EU tariffs deadline after a Sunday phone call with European Commission President Ursula von der Leyen, who, according to Trump, said that she “wants to get down to serious negotiations.”

The EU is a key trading partner for India, and experts note that several Indian goods are routed through the EU for export to the US. This development also reduces the concerns about a trade war as it highlights the fact that the US wants to negotiate trade tariffs with its trading partners.

(This is a developing story. Please check back for fresh updates.)