Stories
Sensex Jumps 600 Points: Market Rebounds After Six Weeks, Four Key Reasons Behind Rally.
N
News18•21-09-2026, 14:12
Sensex Jumps 600 Points: Market Rebounds After Six Weeks, Four Key Reasons Behind Rally.
- •Indian stock market saw a significant rebound on Monday, with Sensex gaining nearly 600 points and Nifty reaching 23,450, ending a six-week losing streak.
- •The rally was driven by four main factors: softening crude oil prices, renewed buying by foreign investors, positive global market cues, and bargain hunting.
- •Brent crude prices fell by 2.25% to $101.5 per barrel, easing concerns over India's import bill and corporate costs, with expectations of improved supply from Saudi Arabia.
- •Foreign Institutional Investors (FIIs) turned net buyers, investing ₹599 crore after seven sessions of selling, while Domestic Institutional Investors (DIIs) continued buying with over ₹1,000 crore.
- •Positive sentiment in Asian markets and bargain buying after a prolonged decline, coupled with short covering, contributed to the market's upward movement, though experts advise caution.
Key Questions Answered
The market rally was driven by four major factors: the softening of crude oil prices, the return of foreign institutional investors, positive signals from global markets, and bargain buying of heavily beaten-down shares.
International benchmark Brent crude fell by about 2.25 percent to $101.5 per barrel due to expectations of improved supply from Saudi Arabia. This drop helps lower India's import bill, eases cost pressures on petroleum companies, and provides relief regarding inflation.
Yes, foreign investors ended seven consecutive sessions of selling by becoming net buyers of Indian equities worth approximately ₹599 crore. Additionally, domestic institutional institutions continued their support by investing over ₹1,000 crore.
