Stock markets rebound tracking drop in crude oil prices
Stock market benchmark indices Sensex and Nifty ended nearly 1 per cent higher on Tuesday after two days of massive decline, following a drop in crude oil prices and recovery in global peers amid hopes that the conflict in West Asia could end soon.The 30-share BSE Sensex jumped 639.82 points or 0.82 per cent to settle at 78,205.98. During the day, it surged 960.09 points or 1.23 per cent to 78,526.25.
The 50-share NSE Nifty climbed 233.55 points or 0.97 per cent to end at 24,261.60. Brent crude, the global oil benchmark, tumbled 9.03 per cent to $90.26 per barrel.From the 30-Sensex firms, Mahindra & Mahindra, InterGlobe Aviation, Maruti, ICICI Bank, Asian Paints and UltraTech Cement were among the major gainers.Eternal, Infosys, Reliance Industries and Bharti Airtel were among the laggards.
In Asian markets, South Korea’s Kospi rebounded sharply by 5.35 per cent, while Japan’s Nikkei 225 jumped 2.88 per cent. Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index also ended in positive territory.Markets in Europe were trading sharply higher.The US market ended higher on Monday.
“The rebound came after signs of potential de-escalation in the Middle East conflict, as US President Donald Trump hinted at a possible early end to the Iran war. This development eased geopolitical concerns and triggered a sharp correction in global crude oil prices, helping risk sentiment stabilize,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Foreign Institutional Investors (FIIs) offloaded equities worth INR 6,345.57 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however bought stocks worth INR 9,013.80 crore.“Indian equity markets witnessed a strong rebound today as easing geopolitical concerns and a sharp reversal in crude oil prices helped restore investor confidence after recent volatility. “The Nifty-50 advanced over 200 points, supported by improving global sentiment as markets reacted positively to signs that tensions surrounding the ongoing Middle East conflict may begin to ease,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
On Monday, the Sensex tanked 1,352.74 points or 1.71 per cent to settle at 77,566.16, registering its second day of decline. On similar lines, the Nifty dropped 422.40 points or 1.73 per cent to end at 24,028.05.
