A very good rise is being seen in the stock market on Friday. Where Sensex was seen trading with a rise of about one thousand points. On the other hand, Nifty saw a rise of more than 300 points. Well, this rise has not happened just like that. There has been a rise in the stock market after the statements of US President Donald Trump and Israeli PM Benjamin Netanyahu.
Israel’s PM said that he will no longer target fuel infrastructure. So that there is no hindrance in global supply. On the other hand, Trump said that he is not planning to send any kind of army to Iran. Due to which there are signs of some relief in global tension.
Also, there has been a decline in the prices of crude oil. Apart from this, on Thursday the US Treasury Secretary had said that he can lift the ban on Iranian oil, which is 140 million barrels. Due to this also a change has been seen in the sentiment of investors. This is the reason that due to the rise in the stock market, investors made a profit of Rs 7.24 lakh crore. Let us also tell you what kind of figures are being seen in the stock market.
Stock market boomed
A good rise was seen in the stock market on Friday. Bombay Stock Exchange’s main index Sensex is trading at 74,915.30 points with a rise of 700 points at 9.45 am. Whereas during the trading session, the Sensex had reached 75,204.64 points with a rise of 976.77 points. However, on Thursday there was a fall of about 2500 points in the stock market. On the other hand, Nifty, the main index of National Stock Exchange, also saw a rise of more than 300 points. However, at 9.50 am, Nifty was seen trading at 23,241.20 points with a rise of 252.40 points and during the trading session it reached 23,319.70 points with a rise of more than 300 points.
Which stocks rose?
The biggest gainers on the Sensex included Tech Mahindra, State Bank of India (SBI), Tata Steel, HCLTech, Infosys and Power Grid, which rose by 2-3 per cent. However, HDFC Bank shares were the only stock which declined. Due to heavy selling yesterday after the sudden resignation of its Chairman Atanu Chakraborty, the shares fell by more than 1 per cent even today. All the sectoral indices of NSE opened in the green, in which Nifty IT and Nifty Metal saw a rise of about 2 percent. On NSE, 2,3030 shares rose, while 257 shares declined and there was no change in 53 shares.
Why did the stock market rise today?
effect of crude oil
After reaching above the $110 per barrel mark yesterday, the rise in oil prices slowed down a bit on Friday. On Friday morning, Brent crude futures were down more than 1 percent and were trading at $ 107 per barrel. This came as major European countries and Japan offered to join efforts to ensure safe passage of ships through the Strait of Hormuz, and the US took steps to increase oil supplies. Growing expectations of reduction in war between Iran and America-Israel also supported the fall in oil prices. However, oil prices still remain well above pre-Middle East war levels, requiring some caution.
value buying
Yesterday the markets witnessed a massive attack by the ‘bears’ when the Sensex fell by almost 2,500 points and the Nifty fell by 776 points. Due to this huge selling in the market, approximately Rs 12 lakh crore was wiped out from the total market capitalization of all the companies listed on BSE. On Thursday, the biggest fall in the stock market in almost two years was seen. After yesterday’s heavy selling, investors may have resorted to ‘value buying’ today, which may have boosted the markets. However, the markets have so far been able to only partially recover the huge losses incurred yesterday.
Hopes of Iran-America war reducing
Israel has said that it will no longer target energy infrastructure. The statement came as an attack on an Iranian gas field triggered retaliatory attacks on energy assets across the Middle East. At a press conference on Thursday, Prime Minister Benjamin Netanyahu said that Israel had acted alone, whereas Israeli officials had earlier said that they had informed the US about the attack.
US President Donald Trump said he had urged Israeli Prime Minister Benjamin Netanyahu not to attack Iranian energy infrastructure again. All these developments have increased hopes of the ongoing fierce war between Iran and America-Israel; Weeks of escalating hostilities in the oil-rich Middle East have roiled global markets.
Rupee at historical low
The Indian rupee fell sharply to its lowest ever level, falling to 92.92 against the US dollar. Jatin Trivedi, VP Research Analyst – Commodity & Currency at LKP Securities, said the macro environment still remains unfavorable; Crude oil prices are likely to remain high for a long time, which will keep pressure on the rupee. The analyst further said that in the near term, the rupee is expected to trade within a weak range of 92.2592.95 against the US dollar.
Selling by foreign investors for 15 consecutive days
Despite some slight uptick in the markets, continued selling by foreign investors will remain a hindrance. FIIs continued to sell Indian stocks, and sold shares worth Rs 7,558 crore on Thursday — the 15th consecutive session when they made a net sale. In the current month, foreign investors have sold more than Rs 77 thousand crore.
Huge jump in US bond yields
A sharp decline in global bond markets on Thursday pushed yields to their highest level in several months, although the selling spree in Asia subsided on Friday. The yield on the two-year US Treasury note — which generally reflects expectations about near-term interest rates — rose more than 20 basis points in the previous session. Additionally, the benchmark 10-year yield also rose to its highest level since late August.