Oil companies benefited
The Indian stock market was buzzing on Friday. There was a tremendous rise in Sensex and Nifty. The market’s main index Sensex closed with a gain of about 1,700 points. The sharp fall in crude oil prices was also a major reason behind this. Due to this fall, oil marketing companies also became silver, in which HPCL shares rose by more than 6 percent.
On BSE, shares of Hindustan Petroleum Corporation Limited (HPCL) rose by 6.30 percent, shares of Bharat Petroleum Corporation Limited (BPCL) rose by 5.54 percent and shares of Indian Oil Corporation (IOC) rose by 4.91 percent. The price of global oil benchmark Brent crude fell 3.98 percent to $ 86.78 per barrel. Other oil related sectors like aviation and paints were also in discussion. SpiceJet shares gained 7.30 per cent, while InterGlobe Aviation shares rose 4.59 per cent. Among paint companies, Indigo Paints gained 4.64 percent, Shalimar Paints 2.33 percent, Asian Paints 2.06 percent and Berger Paints 0.05 percent.
After US President Donald Trump’s announcement that his country has ended the war with Iran, crude oil prices in the global market fell by about 4 percent to below $ 90 per barrel. Ajit Mishra, Research SVP, Religare Broking Limited, said that after the fall in crude oil prices, tremendous buying was seen in oil-related sectors like aviation, paints, tires and cement.
Agreement between Iran and US
Trump said that the agreement to end the war with Iran is almost ready and it is expected that it can be signed in Europe this weekend. He canceled plans for military action on the Islamic Republic just hours after threatening to seize Iran’s oil industry. Speaking to reporters in the Oval Office on Thursday afternoon, Trump said Vice President JD Vance was expected to attend the signing ceremony, which could take place in Europe this weekend. Later, in a tele-rally organized in support of Georgia Lieutenant Governor Burt Jones, Trump said that America has ended the war with Iran.
Donald Trump said that I don’t know if you heard or not, but today we have ended the war with Iran and they have agreed to never have nuclear weapons. This was our biggest priority. Hariprasad K, research analyst and founder of Livelong Wealth. Said that the biggest relief for India was the huge fall in crude oil prices. Oil prices have fallen significantly due to supply disruptions and reduced risks related to the Strait of Hormuz. India gets direct benefit from low crude oil prices. This reduces import costs, reduces pressure on inflation and improves the economic condition of the country.
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