share market
Initial trends of the assembly election results of five states of the country have emerged. Where there are signs of big changes in Tamil Nadu, Kerala and Bengal. On the other hand, in Assam, BJP is once again returning to power with strength. The most important results are from Bengal. Where in the initial trends, BJP is seen crossing the majority mark.
Due to these trends the stock market has started reacting. Where Sensex saw a rise of up to 900 points. On the other hand, a rise of more than 250 points was seen in Nifty also. Due to which stock market investors earned more than Rs 5.4 lakh crore in a short time.
However, experts believe that the trend is quite preliminary. Especially, it is very important to wait till 12 o’clock to know what the results of Bengal elections may be. After that the stock market may react more. If BJP is successful in maintaining its lead in Bengal even after 12 o’clock, then Sensex and Nifty may see a rise of 2 to 3 percent. Let us also tell you what are those 4 reasons due to which the stock market is witnessing a boom.
Good rise in stock market
A tremendous surge is being seen in the Indian stock market on Monday. Both Sensex and Nifty saw a rise of about 1 percent. At 10:35 am, the Sensex is trading at 77,520.78 points with a rise of more than 600 points. Whereas during the trading session it reached 77,910.75 points with a gain of 997.25 points. On the other hand, the main index of National Stock Exchange, Nifty, is trading at 24,193.15 points with a rise of more than 190 points. Whereas during the trading session, Nifty had reached 24,290.20 points with a rise of about 300 points.
Shares of Hindustan Unilever (HUL) and Maruti Suzuki rose by more than 4 percent and became the biggest gainers on the Sensex. These were followed by L&T, Adani Ports, Asian Paints and M&M, which saw a growth of more than 2%. In contrast, Kotak Mahindra Bank shares fell by about 3%. India VIX, an index measuring market volatility, fell more than 4.5% to 17.65 on Monday morning. This rise in the market was seen in almost all sectors. Nifty Smallcap 100 and Nifty Midcap 100 indices registered a gain of more than 1 percent.
If we look at sectoral indices, Nifty Auto and Nifty Realty gained about 2 percent each and became the biggest gainer indices. Nifty MFCG, Nifty PSU Bank and some other sectoral indices saw a rise of more than 1.5 percent. About 2,246 shares rose on the National Stock Exchange, while 690 shares declined and there was no change in 87 shares.
Stock market boomed due to these reasons
BJP ahead in West Bengal election results as per initial trends
Counting of votes has begun in four states and one Union Territory, and markets are closely watching the early trends. A tough contest is being seen between the ruling TMC and BJP in the West Bengal elections. By the way, at 10.45 am, BJP has crossed the majority mark in the trends and has crossed 160 seats. On the other hand, TMC is leading on 120 seats. Similar trends are being seen in Tamil Nadu and Kerala also.
Where Thalapathy Vijay’s party is ahead in more than 100 seats and the Congress alliance seems far ahead in Kerala. The government seems to be repeating itself once again in Assam and Puducherry. VK Vijayakumar, chief investment strategist at Geojit Investments, said that market movements can be largely influenced by the results of state elections, in which West Bengal will be in special focus. But it is important to keep in mind that its effect will last only for a very short period of time.
Trump’s new plan to free ships stranded in Hormuz State
US President Donald Trump has revealed his new plan to “free” ships stranded due to the continued closure of the Strait of Hormuz amid the ongoing war with Iran. In a post on Truth Social, Trump on Sunday announced ‘Project Freedom’, which aims to help cargo ships stranded since the beginning of the war in the Middle East.
Iran had earlier said the US administration had responded to its 14-point proposal through Pakistan and was reviewing that response, although Trump said it was unlikely to be acceptable. Markets are probably again anticipating that the war will end soon, and trade through the Strait of Hormuz will resume.
Oil prices below $110
Oil prices continued to soften, as Trump’s plan to free ships stuck in the Strait of Hormuz may have eased some supply-related concerns. Brent crude futures fell to $108 per barrel, while US WTI futures slipped to $101 per barrel. Macquarie expects crude prices to remain in the range of $85-90 in the near future. However, he warned that if the disruptions continued for a long time, Brent prices could reach $150 a barrel by April.
Meanwhile, Nuwama Institutional Equities said a prolonged closure of the Strait of Hormuz—which passes through about 20 million barrels of oil a day—could push crude prices into the $110 to $150 range. The rise in oil prices started in March this year, when the Strait of Hormuz was closed due to the US-Iran war, which affected Dalal Street and other markets around the world.
Global market in green mark
Asian markets opened mostly in the green. South Korea’s Kospi rose almost 5 percent on Monday morning. Hong Kong’s Hang Seng rose nearly 2 percent, while the Taiwan-weighted index rose more than 4 percent. Shanghai Composite and Japan’s Nikkei were trading with slight gains. Wall Street closed in the green on Friday, with the tech-heavy Nasdaq gaining about 0.9 percent. In Europe, Germany’s DAX rose more than 1 percent, France’s CAC rose 0.5 percent, while the UK’s FTSE closed in the red on Thursday.
