Sensex surges 700 points today: 5 major reasons behind the rally

Stock market today: The S&P BSE Sensex rose almost nearly 700 points today (April 29) while Nifty50 climbed 150 points to move past 22,550 while India VIX was up over 12% to 12.25.

Stock market today: A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters)

Here are some reasons behind the surge today:

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1. Banking stocks traded with strong momentum today. Top five index contributors were ICICI Bank, SBI, HDFC Bank and Kotak Bank while Nifty Bank index hit its highest intraday point of 48,979.10 as it rose by 780 points. Other than IDFC First Bank and Bandhan Bank, remaining 10 counters in Nifty Bank traded in the green and PSU Bank Index rose over 1%.
2. The surge in Indian indices comes as Nasdaq Composite finished at 15,927.90, up by 316.14 points or 2.03% while S&P 500 closed at 5,099.96, gaining 51.54 points or 1.02%. Read more: Bank holidays in May: Will Banks be closed on May 1? Check state-wise list here
3. Japan's Nikkei 225, Hong Kong's Hang Seng index and China's Shanghai Composite also gained between 0.81% and 0.65% around this time which likely had an impact on Indian indices as well.
4. Crude oil prices were also low amid geo-political tensions after Iran's missile attacks on Israel earlier this month. US WTI crude oil contracts traded at $83.030 per BBL, down by $0.820 or 0.980%. Brent Oil futures were down by over $1 per BBL to $88.490. Read more: Watch Elon Musk's praise for China: 'I'm a big fan. I also have fans here'
5. This also comes as Israel-Hamas peace talks in Cairo eased fears of a wider conflict in the Middle East.

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