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There has been a tremendous increase in the stock market for the second consecutive day. Where Sensex saw an increase of more than 12 points on Wednesday. Whereas on Tuesday, Sensex saw a rise of more than 1300 points. This is the reason why Sensex has seen an increase of more than 2550 points in two days. On the other hand, the main index of National Stock Exchange, Nifty, saw a rise of about 400 points on Wednesday. The special thing is that Nifty has seen a rise of more than 3.50 percent in two days. Due to which stock market investors have earned about Rs 16 lakh crore in two days.

In fact, the main reason for the rise in the stock market is the expectations of reducing tension in the Middle East. About two days ago, Trump had announced not to attack Iran's energy infrastructure in any way. After which positive sentiment is being seen in the stock market. After this announcement, there has been a decline in the prices of crude oil. On Wednesday, the price of Brent crude was seen below 100 dollars. On the other hand, a decline has also been seen in dollar and bond yields. The stock market also appeared to be getting a boost due to the rise in foreign markets.

If experts are to be believed, there may be ups and downs in the stock market in the coming days. So far no positive signals have been received from Iran. At the same time, other countries of the Middle East are also seen mobilizing against Iran. Due to which the stock market may once again see a decline. However, there is a continuous decline in the rupee against the dollar. Due to which pressure may be seen in the stock market. Let us also tell you what kind of figures were seen in the stock market on Wednesday and how much rise has been seen in Sensex and Nifty in two days.

Stock market rises for the second consecutive day

The stock market has seen an increase of more than 1.1 percent for the second consecutive day. Due to which the stock market has seen a rise of more than 3.50 percent in two days. If we look at the data, on Wednesday the main index Sensex of Bombay Stock Exchange closed at 75,273.45 points with a rise of 1205 points. However, on Tuesday, Sensex saw a rise of more than 1300 points. This is the reason why Sensex has seen an increase of 2,577.06 points in two days. This means that Sensex has given a return of 3.54 percent in Nifty in two days.

However, Nifty has also not given any less returns as compared to Sensex. National Stock Exchange's main index Nifty has given a return of more than 3.50 percent in two days. On Wednesday, Nifty closed at 23,306.45 points with a gain of 394 points. By the way, on Tuesday there was a rise of about 400 points in Nifty. This means that an increase of 793.8 points has been seen in Nifty. This means that Nifty has given a return of 3.53 percent to investors in two days. Earlier on March 23, there was a big fall in the stock market due to which Rs 10 lakh crore of stock market investors went missing.

Why did the stock market rise?

Signs of easing of US-Iran tension

There is a rise in the stock market due to expectations of less tension between US and Iran. US President Donald Trump claimed there are "major points of agreement" between Washington DC and Tehran and ordered a five-day halt to US attacks on Iranian energy infrastructure, raising hopes of a diplomatic breakthrough. Israeli media claimed on Monday that the US has set April 9 as a possible date to end the war against Iran.

VK Vijayakumar, chief investment strategist at Geojit Investments, said that hopes are returning in the market with signs of reduction in conflict. The signals coming from President Trump and the Iranian regime are indicating that the war will end soon. In particular, Iran's reiteration that 'non-hostile vessels can pass through the Strait of Hormuz' is good news that will ease India's energy concerns.

The US-Iran conflict had raised concerns about a possible surge in inflation, leading to fears of monetary policy tightening and a slowdown in economic growth. However, signs that the conflict is nearing an end have eased concerns about its serious impact on India's macroeconomic outlook. Experts say that if crude oil prices remain low and inflation remains under control, then the central bank may consider cutting interest rates in the second half of the current year.

Rise in global markets

India's stock market is also getting a push due to the rise in international markets. Almost all major Asian markets were in gain in early trade. Japan's Nikkei and Korea's Kospi jumped up to 3 percent, while China's Shanghai Composite Index rose 1 percent amid reports of peace talks between the US and Iran.

Dollar, bond yields fall

Reduction in geopolitical risks and sharp fall in crude oil prices had an impact on the US dollar and bond yields. The dollar index fell about 0.40 per cent to near 99, while the benchmark 10-year US bond yield fell 1.5 per cent to 4.32 per cent. A fall in the US dollar and bond yields is generally positive for equities, especially for emerging markets like India, as it increases the chances of foreign capital inflows into these markets.

Crude oil prices below $100

Brent crude prices fell more than 5% to below the $100 per barrel mark following reports of US diplomatic efforts to resolve the Middle East conflict. Brent oil futures June contracts fell to $93.45 amid reduction in geopolitical risk. Vijayakumar said that the price of Brent crude is seen at $ 98 per barrel. The US 10-year yield has also declined. Gold prices have improved. If this positive development continues, there is scope for a strong comeback in the market.

India is the world's third largest oil importer and consumer, and meets about 80-90% of its crude oil needs through imports. Higher crude oil prices increase the risk of India's import bill rising, widening its current account deficit, pressuring its fiscal deficit targets, weakening the currency, increasing inflation, and creating foreign capital outflows. According to brokerage firm Motilal Oswal Financial Services, crude oil accounts for 23 per cent of India's import bill, and every $10 per barrel increase could increase the oil deficit by $1012 billion (0.40.5% of GDP).

technical factor

Experts say that a possible bullish reversal pattern is visible in Nifty futures. Sachin Gupta, VP Research, Choice Broking, said that on the daily timeframe, Nifty futures formed a bullish pinbar candlestick pattern on Tuesday. This pattern is generally considered a sign of a possible bullish reversal in the index. According to the characteristics of the pinbar pattern, traders can consider creating long positions above the high of the candle, while placing the stop-loss below its low. According to Gupta, the index futures are expected to find immediate support around 22,600 levels, after which a strong support can be found near the recent swing low of 22,470. On the upside, resistance is likely to be found around 23,650, which coincides with the recent gap-down zone and may hinder further gains.