stock market
A bumper rise was seen in the stock market on the last trading day of the week. Market’s main indices Sensex and Nifty ran away rapidly. Nifty crossed the 23,500 mark and on the other hand, the market’s main index Sensex jumped by 16,00 points during trading.
Till the time of writing the news, BSE Sensex rose by 1515 points to reach 75,347, while NSE Nifty 50 was trading at 23,556.65 with a gain of 395.15 points. Overall, today all sector indices were trading with gains, in which Nifty Auto, Nifty Realty, Nifty Private Bank, Nifty PSU Bank and Nifty Metals had the highest gains.
Hopes for US-Iran peace deal
Geopolitical tension eased after US President Donald Trump canceled the planned attacks against Iran. Trump said the US and Iran could sign a peace deal by the end of the week that would reopen the Strait of Hormuz to shipping, but Iran said it had not made any final decisions on the deal.
Global market boom
Global markets reacted positively to this development, and the US stock market closed with gains overnight. The Dow Jones Industrial Average rose 929.97 points, or 1.86%, to 50,848.75, while the S&P 500 rose 127.31 points, or 1.75%, to 7,394.30. The Nasdaq Composite closed 640.16 points, or 2.54%, at 25,809.66. Asian markets also continued to rise, with Japan’s Nikkei rising more than 4% and South Korea’s Kospi rising more than 8%, reflecting a broader recovery.
Fall in crude oil prices
The ongoing decline in crude oil prices since the last session increased further after Trump canceled the plan to attack Iran. Brent crude futures fell 2% to $88.55 a barrel, while US West Texas Intermediate (WTI) crude fell 1.8% to $86.11. India is the third largest oil importer and consumer country in the world. Low oil prices are good for India because they reduce inflationary pressure, reduce the import bill and boost the earnings of companies.
rise in banking shares
Shares of big banks and financial companies gained momentum and were on the rise for the third time in four sessions. This rise came when the Reserve Bank of India (RBI) informed about the concessional forex swap facility for loans taken by banks in foreign currency. Nomura analysts said in a note that when banks swap dollar deposits with the RBI, this should improve their rupee liquidity position over the next four months. This will reduce their dependence on high cost of deposits and they will be able to give more loans.
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