Sensex jumps 600 points, investors earn ₹4 lakh crore. Why is stock market rising despite escalating US-Iran tensions?

Stock market today: The Indian stock market witnessed healthy broad-based buying in intraday trade on Wednesday, July 15, with benchmark indices Sensex and Nifty 50 rising more than 0.5%, while the mid- and small-cap indices gained up to 1%, despite escalating US-Iran tensions and rising crude oil prices.

The 30-share pack rose nearly 600 points, or 0.80%, to an intraday high of 77,641.86, while the Nifty 50 climbed to 24,218.15, rising more than 150 points, or 0.70%.

The Nifty Midcap 100 index rose by 0.70% to hit its 52-week high of 63,183.35, while the Nifty Smallcap 100 index vaulted 1.2% to its 52-week high of 19,450.35.

Investors wealth grew by about ₹3.5 lakh crore as the overall market capitalisation of BSE-listed firms rose to ₹483 lakh crore from ₹479.5 lakh crore in the previous session.

Let's take a look at key factors behind the rise in the domestic stock market:

Perhaps the biggest reason behind the market rise today. Soft US inflation data influenced sentiment globally as it made market participants dial back expectations of aggressive rate hikes by the US Federal Reserve this year.

US Consumer Price Index (CPI) inflation eased to 3.5% in June 2026 from 4.2% in May. Month-on-month, the US CPI declined 0.4%, the first decline since the COVID-19 pandemic (April 2020), after increasing 0.5% in May.

Annualised core inflation, or inflation excluding the volatile food and energy components, increased by 2.6% year-on-year compared with expectations for 2.8%, and after rising 2.9% year-on-year in May.

Markets across the globe cheered US June CPI data. Among Asian markets, South Korea's Kospi jumped 8%, while Japan's Nikkei 225 index and Hong Kong's Hang Seng index traded higher.

A day after announcing a 20% transit fee through the Strait of Hormuz, US President Donald Trump dropped his demand for the toll on Tuesday. Instead, he said he has decided to replace it with trade and investment deals that the various Gulf states. Moreover, he declared the ​Strait ⁠of Hormuz was open to all ships except for Iran.

U.S. senators unveiled an updated Russia sanctions bill on Tuesday, which cuts the tariff threat for countries like China and India, who import of Russian oil and gas, from originally proposed 500% to 100%.

The bill authorises the Trump administration to impose tariffs set at a rate above zero but capped well below full value on countries identified as the largest buyers of Russian oil.

(This is a developing story. Please check back for fresh updates.)

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