Markets rally as crude slips under $100 amid US-Iran peace optimism
The benchmark BSE Sensex surged 892.05 points, or 1.18%, to 76,307.40 around 9:24 am, while the NSE Nifty50 jumped 259.50 points, or 1.09%, to 23,978.80, moving closer to the key 24,000 mark.
Benchmark stock market indices opened sharply higher on Monday after crude oil prices slipped below the $100-per-barrel mark for the first time in more than two weeks amid hopes of a possible peace deal between the US and Iran.
The S&P BSE Sensex jumped 827.41 points, or 1.10%, to 76,242.76 in early trade, while the NSE Nifty50 surged 237.70 points, or 1%, to 23,957.
Investor sentiment improved after US President Donald Trump said Washington and Iran had “largely negotiated” a memorandum of understanding on a peace agreement that could reopen the Strait of Hormuz, a key global energy shipping route.
Brent crude prices fell 5.6% to $97.8 per barrel, while Asian markets rose 1.3% as easing geopolitical concerns lifted risk appetite globally. The Indian rupee also strengthened 0.37% to open at 95.34 against the US dollar, compared to its previous close of 95.69.
Among Sensex stocks, Larsen and Toubro led the gainers, rising 2.63%. HDFC Bank gained 1.99%, while Kotak Mahindra Bank and Indigo climbed 1.95% and 1.93%, respectively. Bajaj Finserv and Mahindra and Mahindra also traded firmly higher.
On the sectoral front, banking, financial and auto stocks saw strong buying interest as falling crude prices boosted sentiment. IT stocks also traded in the green in early trade, although Tata Consultancy Services and Infosys slipped marginally.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, “We are starting the week on a positive note. Crude has dipped by $5 to below $100 on expectations that US and Iran are close to a deal. The market will wait and watch for clarity and certainty since many similar expectations have been belied since the start of the war. If this expected deal holds and crude drifts down, that can turn out to be turning point for the market.”
“Another positive trend is the better-than-expected Q4 results. An important trend to note is the impressive growth of most digital platform companies. The market has been rewarding performance,” he added.
Commenting on the rupee and foreign investor sentiment, Vijayakumar said, “The appreciation in the rupee from the recent low of 96.96 is a welcome trend. Stability in the currency is necessary to bring back the FPIs who have been on a sustained sell mode. The resilience of the market during this period of crisis is a hugely positive factor. This is a reflection of partly the economy’s strength, and partly the confidence of Indian investors.”
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