Why Did Share Market Rise Today? Know Key Factors Behind Sensex, Nifty Rally On May 14
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At 1:50 pm, the Sensex trades 985 points higher at 75,594.36 after hitting an intraday high of 75,652, while the Nifty rises to 23,750.60.
Why Is Share Market Rising Today?
Why Did Share Market Rise Today? Indian benchmark indices ended sharply higher on Thursday, recovering from recent losses amid strong buying in banking, pharma and metal stocks. Easing volatility, reports on likely tax relief for foreign bond investors, and positive global cues lifted investor sentiment despite continued weakness in the IT sector.
The BSE Sensex closed near the day’s highs, rising 789.74 points, or 1.06 per cent, to 75,398.72 after touching an intraday high of 75,681.88. The NSE Nifty 50 climbed 277 points, or 1.18 per cent, to settle at 23,689.60.
The rally marked a strong rebound after benchmark indices had corrected nearly 4 per cent over the previous four sessions amid concerns over rising crude oil prices and uncertainty following Prime Minister Narendra Modi’s austerity call.
Banking and financial stocks led the market recovery. The Nifty Bank index advanced 1.26 per cent to 54,128.95, while Nifty Financial Services gained 1.42 per cent. HDFC Bank rose 2.67 per cent, while Kotak Mahindra Bank, SBI and Bajaj Finance also ended higher.
Key factors supporting rise in the domestic equity markets:
Bargain buying in beaten-down stocks: Investors continued to lap up stocks that had corrected sharply in recent sessions, helping benchmark indices recover further. The buying interest came after the Sensex and Nifty had witnessed nearly a 4 per cent decline over the previous four trading sessions amid concerns over rising crude oil prices and uncertainty triggered by Prime Minister Narendra Modi’s austerity call. The benchmarks had already shown signs of stabilisation on Wednesday by ending marginally higher.
Cooling market volatility: Investor sentiment improved further as market volatility cooled. India VIX, often referred to as the fear gauge, declined over 4 per cent to 18.61, indicating easing nervousness among traders.
Positive global market signals: Strong cues from Asian and US markets also supported domestic equities. Most Asian indices traded in the green on Thursday, tracking gains in global technology stocks and upbeat corporate earnings. Japan’s Nikkei 225 rose 0.3 per cent after touching a fresh intraday record high, while South Korea’s Kospi, Hong Kong’s Hang Seng and Taiwan’s Taiex also advanced.
Wall Street had ended mostly higher overnight, led by technology shares. The S&P 500 gained 0.6 per cent to hit a new record closing high, while the Nasdaq Composite surged 1.2 per cent to another lifetime peak.
Possible tax relief for foreign investors lifts sentiment: Investor mood also improved after reports indicated that the Centre is considering reducing taxes on bond investments made by foreign investors. According to a Bloomberg report, the proposal — backed by the Reserve Bank of India — is being actively examined by the Finance Ministry as part of efforts to align India’s tax structure with global norms, attract overseas inflows and support the rupee.
Optimism over US-China engagement: Markets also took comfort from ongoing talks between the US and China, with investors hoping the discussions could help ease global geopolitical and economic uncertainties. Oil prices, however, remained firm amid tensions linked to the Iran conflict and concerns over energy supply disruptions through the Strait of Hormuz.
Chinese President Xi Jinping described 2026 as a “historic, landmark year” for China-US ties while welcoming US President Donald Trump for talks in Beijing. The two leaders are scheduled to hold multiple rounds of discussions over Thursday and Friday.
Earnings-driven buying in select heavyweights: Stock-specific action also supported the broader market. Shares of Bharti Airtel rose around 5 per cent after the telecom operator posted higher quarterly profit, aided by tariff hikes, premium subscriber additions and strong growth in its Africa operations. HDFC Bank also surged 2.66 per cent on Thursday.
Expiry-day positioning adds momentum: Thursday being the weekly expiry session for Sensex derivatives contracts also kept trading activity elevated. Market participants typically unwind or roll over their futures and options positions on expiry day, resulting in increased intraday volatility and higher trading volumes.
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