The Indian stock market is witnessing a strong rally today (13 June 2025, Friday). The Bombay Stock Exchange (BSE) major index, Sensex, has climbed up significantly, and investors are beaming with joy. But the question is, why is the Sensex so bullish today? Let us understand the main reasons in detail: Why is Sensex today rissing
1. Why is Sensex today rissing (Positive Global Cues)
Strength in US markets: US stock markets (especially Dow Jones and Nasdaq) saw good gains last night. Talks on the possibility of interest rate cuts by the US Federal Reserve (Fed) and some weak economic data gave investors hope that inflation is being brought under control. Indian markets often follow global trends.
Greenery in Asian markets: Major Asian markets like Japan (Nikkei), South Korea (Kospi), and Hong Kong (Hang Seng) also saw a buying trend this morning, which further strengthened the Indian market.
2. (Foreign Investors Buying)
Foreign institutional investors (FIIs), who have been withdrawing money from Indian stocks in the last few weeks, have started buying again today. The Indian market is looking attractive to them again, which is directly affecting the Sensex. FII’s investment increases liquidity and confidence in the market.
3. (Strong Domestic Institutional Support):
Domestic institutional investors (DIIs) such as mutual funds and insurance companies have been continuously investing in Indian stocks. Their investment power kept the market afloat even during the period of FIIs’ withdrawal. Today, their support continues, and together with FIIs, it is further fueling the rally.
4. (Expectations from Upcoming Budget):
The new government is due to present its full budget soon. Investors are expecting measures such as increased infrastructure spending, schemes to boost manufacturing, and tax reforms. This positive sentiment has led to a rally in stocks, especially in banking, infrastructure, and capital goods, which are a major component of the Sensex.
5. (Stable Crude Oil Prices):
The prices of crude oil (Brent crude) in the international market have remained relatively stable for the last few days. India is a big importer of oil. A sharp rise in oil prices badly affects India’s import bill, inflation rate, and government finances. The stability in prices is a matter of relief for the market.
6. (Technical Factors—Oversold Bounce):
In the last few sessions, some consolidation or slight decline was seen in the Sensex and the Nifty. Some analysts are considering this a technical bounce. When the market reaches an oversold condition, buyers return, leading to a rally.
(A Word of Caution):
Remember, the stock market is always full of ups and downs. Today’s rise is a matter of joy, but uncertainty remains.
Factors like the global economic situation, policies of central banks (especially the US Fed), domestic inflation, monsoon performance, and the upcoming budget will decide the direction of the market in the coming days.
Investors are advised to maintain a diversified portfolio and invest with a long-term perspective, keeping in mind their risk appetite. Avoid getting emotional in short-term fluctuations.
(Bottom Line):
The main reasons behind the rise in the Sensex today are strength in global markets, the return of foreign investors, strong support from domestic investors, positive expectations about the upcoming budget, and stability in crude oil prices. This rise reflects increasing confidence in the market and willingness to take risks. However, investors should keep an eye on market dynamics and make informed decisions.
Disclaimer: This article is for general information and should not be considered investment advice. Investing in the stock market is subject to risk. Consult a qualified financial advisor before making any investment decision.