Why stock market gained over 1,000 points today

The trading session began on a strong note as major indices recorded notable gains. Nifty settled at 26,205.30, rising by 320.5 points, while the Sensex reached 85,609, adding 1,022 points during the day. The Nifty Bank index touched a new high of 59,555, highlighting increased momentum in the banking segment.

Market sentiment was supported by a sharp rise in overall valuation. The BSE market capitalisation increased by ₹5.5 lakh crore, reaching ₹474.87 lakh crore. The rise in heavyweight stocks contributed significantly to the upbeat mood. Reliance showed a 26% gain year-to-date, and HDFC Bank recorded a 13% increase year-to-date, adding strength to the indices.

The current market performance reflects strong participation and improved investor confidence across sectors, particularly in large-cap companies.

Key Factors That Supported Market Momentum

Four major developments shaped today’s positive mood in the markets:

1. Improved Sentiment on US Federal Policy

Global investors closely tracked expectations ahead of the US Federal Reserve’s December policy meeting. Softer economic data in the U.S. supported discussions around a potential policy shift. CME Group’s FedWatch data indicated that many market participants anticipate easing measures, which helped lift overall sentiment.

2. Global Market Support

Asian markets followed the rebound seen on Wall Street. The MSCI Asia-Pacific index (excluding Japan) gained around 1%, and Japan’s Nikkei rose 1.8%. U.S. futures opened slightly higher. The rise was largely attributed to weaker retail sales and lower consumer confidence data, which helped extend the recovery trend across major indices.

3. Cooling Crude Oil Prices

Crude oil hovered just above the $60 level, close to a one-month low. Lower prices are being tracked globally due to their influence on trade costs and commodity-linked sectors. Some institutions also shared long-term views of possible supply pressure in the coming years, which added to the ongoing discussions in energy markets.

4. Broad-Based Buying Across Sectors

Buying interest was visible across multiple segments, with midcap and smallcap indices posting strong gains. Heavyweights led the move, while broader participation helped reinforce confidence after a volatile session linked to monthly derivatives expiry.