Source : INDIA TODAY NEWS
Stock markets opened sharply higher on Wednesday, extending gains for the second straight session, as easing concerns around the West Asia conflict and a sharp fall in crude oil prices lifted investor sentiment.
The S&P BSE Sensex rose 927.28 points to 74,995.73, while the NSE Nifty50 gained 306.85 points to 23,219.25 as of 9:30 am, with both indices up nearly 2%.
WHY MARKETS ARE RISING TODAY
The main trigger for today’s rally is growing hope that tensions in the Iran conflict may ease. Reports suggest that the United States is working on a possible month-long ceasefire and has shared a 15-point plan with Iran.
US President Donald Trump said that progress is being made towards ending the war. At the same time, Iran has denied any direct talks, but markets appear to be reacting to the possibility of easing tensions.
Another key factor is the fall in crude oil prices. As of around 9:25 am, Brent crude was at $99.78, down 4.51%, while WTI crude was at $88.96, down 3.67%. Lower oil prices are positive for India as they reduce inflation pressure and ease concerns around energy costs.
Asian markets also supported sentiment, rising 1.9%, which added to the positive momentum in Indian equities.
BROAD-BASED BUYING ACROSS SECTORS
The rally was broad-based, with most sectoral indices trading in the green. Nifty Realty led the gains, rising 3.58%, followed by Nifty Metal up 2.31%, and Nifty Media up 2.24%.
Other sectors also saw buying interest. Nifty Financial Services gained 2.06%, Nifty Private Bank rose 1.79%, Nifty Pharma was up 1.54%, and Nifty FMCG climbed 1.52%. Nifty Oil & Gas also moved higher by 0.94%.
Only Nifty IT showed weakness, slipping 0.47%.
This shows that buying was not limited to a few stocks but spread across sectors, indicating improving sentiment.
TOP SENSEX GAINERS AND LOSERS
Among Sensex stocks, Trent was the top gainer, rising 3.21%, followed by UltraTech Cement up 2.85%, HDFC Bank gaining 2.84%, and Adani Ports also up 2.84%. Bajaj Finance rose 2.62%, while Mahindra & Mahindra gained 2.36%.
Other gainers included Eternal up 2.16%, Bajaj Finserv rising 2.12%, Axis Bank up 2.00%, and IndiGo gaining 1.95%.
On the losing side, Infosys fell 0.63%, HCLTech declined 0.36%, TCS slipped 0.03%, and Tech Mahindra dropped 2.24%, making IT the only weak pocket in early trade.
HOPE OF DE-ESCALATION DRIVING MARKETS
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said that markets are reacting to signs of easing tensions.
“Remarks from President Trump and from the Iranian regime indicate that the conflict might end soon. Particularly the reiteration from Iran that ‘non-hostile ships can transit the Strait of Hormuz’ is good news that will mitigate India’s energy concerns,” he said.
He added that falling crude prices are supporting markets.
“These positive developments have reflected in a sharp decline in Brent crude to around $98. The US 10-year yield also has declined. Gold has recovered. If this positive trend continues, there is room for a sharp rebound in the market,” he said.
However, he cautioned that foreign investor flows remain important.
“But if the recovery is to sustain, FIIs should stop their sustained selling, which will require stability in the rupee. Yesterday’s recovery in Nifty was largely due to short covering,” he added.
He also noted that mid- and small-cap stocks may see stronger recovery.
“In the near term, mid and small caps can rebound more than large caps since there is no major FII selling pressure in this segment,” Vijayakumar said.
MARKETS STILL UNDER PRESSURE THIS MONTH
Despite today’s rally, markets have fallen around 9% so far this month due to high crude prices and concerns over the impact of the war on global growth.
Foreign Institutional Investors continued to sell for the 18th straight session on March 24, offloading shares worth over Rs 8,000 crore. Domestic Institutional Investors, however, provided support by buying equities worth Rs 5,867 crore.
WHAT SHOULD INVESTORS DO?
Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited, advised investors to remain cautious.
“Given ongoing global uncertainties and volatility, investors should follow a disciplined and selective approach. Buying fundamentally strong stocks during corrections can be a sensible strategy. Fresh long positions should be considered only after Nifty crosses and sustains above the 24,500 level,” he said.
For now, markets are reacting positively to falling oil prices and hopes of easing tensions, but uncertainty around the conflict continues to remain, which could keep volatility high in the coming sessions.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
– Ends
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SOURCE :- TIMES OF INDIA
