The Sensex and the Nifty decisively closed higher on Thursday. Some of the key triggers for the rally were as under:

· The tensions between the US and Iran did not show signs of worsening during this week. While Trump had threatened to launch counter attacks on Iran after they attacked US facilities in Iraq, markets heaved a sigh of relief after Trump only hardened sanctions.

· The lower tensions led to a sharp fall in the price of crude oil and that came as a major positive for the Indian markets because India relies on imported crude for up to 80% of its daily oil needs.

· The rupee also strengthened on Thursday which gave hopes of renewed flows from FPIs into India and that also led the markets higher.

· In addition, the new mining lease policy announced by the government also turned to be positive for the metal stocks.

· Last but not the least, the markets were also buoyed by the expectations ahead of the Union Budget to be announced on the 01 February.

It is hard to say if this rally can sustain but the markets are surely betting on a toning down of the war rhetoric.