Stock markets climb nearly 1% amid hopes of Iran-US talks
Stock markets advanced for the third consecutive day on Tuesday, with the Sensex jumping by 753 points and the broader Nifty closing above 24,550 following a drop in crude oil prices and hopes for progress on peace talks between Iran and the US.
The 30-share BSE Sensex jumped 753.03 points or 0.96 per cent to settle at 79,273.33. During the day, it surged 846.78 points or 1.07 per cent to 79,367.08.
The 50-share NSE Nifty climbed 211.75 points or 0.87 per cent to end at 24,576.60.
From the 30-Sensex firms, Trent, Hindustan Unilever, ICICI Bank, Bajaj Finance, HDFC Bank and Axis Bank were among the major winners. Bharat Electronics, Titan, Reliance Industries and NTPC were among the laggards. Brent crude, the global oil benchmark, traded 0.75 per cent lower at $94.76 per barrel.
“Indian equity markets traded on a positive note, as investors positioned for a potential near-term de-escalation in the Middle East. Energy markets remained in a consolidation phase, as traders balanced hopes of a near-term resolution and a potential reopening of the Strait of Hormuz against ongoing uncertainty around ceasefire negotiations,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended higher.
Markets in Europe were trading in positive territory.
US markets ended marginally lower on Monday.
The bullish momentum was largely driven by a combination of macro and market-specific triggers. Easing geopolitical concerns, particularly around the US-Iran situation, played a central role in improving risk appetite.
“This was further supported by a cooling in crude oil prices, which helped ease inflation concerns for an oil-import-dependent economy like India and improved margin visibility across sectors,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,059.93 crore on Monday, according to exchange data.
“Amid hopes for progress in Iran-US peace talks and supportive global cues, India’s equity markets rebounded strongly,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
On Monday, the Sensex closed marginally up 26.76 points or 0.03 per cent at 78,520.30. The Nifty edged up 11.30 points or 0.05 per cent to settle at 24,364.85.
