Both the major indices of the Indian stock market, Sensex and Nifty, closed with a rise of more than 1.5 percent on Tuesday. The special thing is that the stock market closed with a rise for the third consecutive day. Softening of oil prices, expectations of Iran-US peace talks and other factors worked to boost the market. Bombay Stock Exchange's main index Sensex closed at 79,273.33 points with a gain of 753 points. Whereas in three consecutive days, Sensex has seen a rise of 1,284.65 points i.e. 1.65 percent.
The main index of National Stock Exchange, Nifty, saw a rise of 211.75 points and closed at 24,576.60 points. The special thing is that in consecutive days Nifty has seen a rise of 379.85 points i.e. 1.57 percent. If we talk about today only, then stock market investors have gained a profit of about Rs 3 lakh crore. Whereas in three consecutive days, investors have made a profit of Rs 8 lakh crore.
Trent shares were the biggest gainers on Sensex, rising by more than 4 percent. Investors are waiting for the bonus issue to be announced by the company tomorrow. After this came the shares of Bajaj Finance, which registered a rise of about 3 percent. At the same time, shares of ICICI Bank, HDFC Bank and Adani Ports increased by about 2 percent.
Bucking the trend, shares of Bharat Electronics (BEL), Titan and Reliance Industries fell up to 1 per cent each. This came as the India VIX, which measures market volatility, fell nearly 6 per cent to 17.75. This enthusiasm was also seen in the broader market, where Nifty Smallcap 100 and Nifty Midcap 100 indices registered a gain of 0.7 percent. Sectorally, Nifty Realty index rose by almost 3 per cent and became the most gaining sector.
Main reasons for the rise in stock market
Hopes for Iran-America peace talks
Trump's ceasefire deadline for Iran war is going to end tomorrow, April 22, due to which investors are in tension. However, the markets are now expecting this war to end soon. Officials of both the countries can meet for the second round of talks this week. Earlier, the first round held earlier this month had not resulted in any long-lasting peace agreement.
Still, it is important to take some precautions. Iran's Foreign Minister Abbas Arakchi said the US's "continued violations of the ceasefire" were hindering further talks. Iran's chief negotiator and parliament speaker, Mohammad Baqer Qalibaf, reiterated that Tehran will not negotiate under pressure or threats of any kind.
Meanwhile, US President Donald Trump went on 'Truth Social' and criticized the previous leaders of America. He alleged that those leaders had made a “very bad” deal with Iran. He further said that "If there is an agreement under the leadership of 'Trump', it will guarantee peace, security and security not only for Israel and the Middle East, but for Europe, America and every part of the world. This will be something the whole world will be proud of. It will be much better than the years of embarrassment and humiliation we have had to endure because of incompetent and cowardly leaders!
Crude oil around $95
There has been a slight softening in oil prices. Brent crude futures are hovering around $95 per barrel, while WTI crude futures have fallen to $88 per barrel. Oil prices remain below the important level of $ 100 per barrel. Oil prices had crossed this level for the first time after Russia attacked Ukraine in 2022. This fall in oil prices has come amid rising expectations of a peace deal between Iran and America and the possibility of full resumption of trade through the 'Strait of Hormuz' thereafter. This strait is considered a very important and strategic route for oil and trade across the world. Meanwhile, according to Bloomberg News report, due to the blockage in the strait, Kuwait has declared 'force majeure' (unavoidable situation) on the oil consignment.
rise in global markets
This rise in Dalal Street (Indian Stock Market) has been seen amidst a general relief rally in the global markets. Japan's Nikkei index gained nearly 1 percent, while South Korea's Kospi index gained nearly 3 percent. Hong Kong's Hang Seng rose more than 0.6 percent, while China's Shanghai Composite erased all the morning's losses and came into the green.
European markets opened in the green. UK's FTSE and France's CAC were trading with slight gains, while Germany's DAX rose more than 0.6 percent. Wall Street closed in the red in the last session. The tech-heavy Nasdaq fell 0.26 percent after reaching a new record high. However, Dow Jones futures are in the green today.
Slowdown in FII selling
After making net purchases of Indian equities for three consecutive sessions, foreign investors again became net sellers on Dalal Street on Monday. FIIs sold Indian equities net worth about Rs 1,060 crore on Monday. Last week, he had bought shares worth Rs 1,731 crore in three consecutive sessions. After the heavy selling in March, the volume of FII selling has decreased significantly, the effect of which was visible in April also.
For example, FIIs sold Indian equities net worth Rs 8,692 crore on April 7, over Rs 11,163 crore on March 30 and over Rs 10,414 crore on March 23. Yesterday's net selling was much lower than the previous FII selling spree seen recently.
Still, it is important to take some precautions. Bond yields remain high, and the rupee has weakened against the US dollar. The Indian rupee fell 0.3 percent to 93.45 against the US dollar. The rupee came under pressure due to partial changes in RBI's FX measures and uncertainty over US-Iran talks.
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