The Indian stock market soared in value on Wednesday and Thursday, with the BSE Sensex rising by roughly 900 points, to 85,338 as well as the Nifty 50 gaining around 300 points, bringing it to 26,180 in the mid-afternoon.

A variety of factors contributed to improving confidence in investors. A decrease in global crude oil prices helped alleviate inflation worries and reduced the cost for businesses as well as customers. Meanwhile, slowing economic indicators coming from in the United States — including lower sales at the retail store and falling consumer confidence — fueled fears about it was likely that Federal Reserve could cut interest rates in the near future. The lower U.S. rates tend to attract investors from around the world to emerging markets such as India.

In the same vein international institutional investor (FIIs) returned by buying net, bringing new cash into Indian stocks, and driving the demand across all sectors. The heavyweights like HDFC Bank, ICICI Bank and Reliance Industries each saw gains by around 1 percentaiding in pushing the wider indexes higher.

The optimism of the global market, enhanced due to a decrease in geopolitical tensions, and anticipation of a softer global economic and monetary policies as well as spilled over into Asian as well as Indian market. Additional factors like short covering (where traders purchase shares that they bet on) and hopes of cuts in rates from the Reserve Bank of India added additional momentum to the market rally.

In the end, the combination of global signals as well as lower oil prices foreign capital flows and the strong performance of the major corporations led to a general rebound and lifted the mood of investors substantially.