Stock markets rally for second day as oil prices fall
Indian stock markets rallied for the second straight day, with Sensex and Nifty gaining nearly 2 per cent, as falling crude oil prices and hopes of de-escalation in West Asia improved global sentiment and boosted investor confidence
Mumbai: Stock markets rallied for the second consecutive day on Wednesday, with benchmark indices Sensex and Nifty closing nearly 2 per cent higher, as crude oil prices dropped and global markets advanced amid hopes of de-escalation in the war in West Asia.
The 30-share BSE Sensex jumped 1,205 points or 1.63 per cent to settle at 75,273.45. During the day, it soared 1,781.31 points or 2.40 per cent to 75,849.76.
The 50-share NSE Nifty surged 394.05 points or 1.72 per cent to end at 23,306.45.
From the 30 Sensex firms, UltraTech Cement, Bajaj Finance, Larsen & Toubro, Titan, InterGlobe Aviation and Trent were the biggest gainers.
Tech Mahindra, Power Grid, Tata Consultancy Services and Bharat Electronics were the laggards.
Brent crude, the global oil benchmark, tanked 5.07 per cent to USD 99.19 per barrel.
“Markets continued to build on the previous day’s momentum as global risk sentiment improved, with hopes of peace emerging. Potential diplomatic progress between the US and Iran, despite mixed geopolitical commentary, led to easing crude oil prices below USD 100, which was welcomed by the market,” Vinod Nair, Head of Research, Geojit Investments Limited, 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.
The US market ended lower on Tuesday.
“The primary trigger for improved sentiment was emerging signals of a potential pause in the ongoing US-Iran conflict. Reports indicating a possible ceasefire framework and diplomatic engagement raised expectations of de-escalation, prompting a risk-on reaction across global markets,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
However, with conflicting narratives still in play, the optimism remains fragile and largely anticipatory rather than confirmed, he added.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,009.56 crore on Tuesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 5,867.15 crore.
On Tuesday, the Sensex jumped 1,372.06 points or 1.89 per cent to settle at 74,068.45. The Nifty surged 399.75 points or 1.78 per cent to end at 22,912.40.
