The news of the two-week ceasefire agreement between the US and Iran has filled global markets as well as Dalal Street with immense enthusiasm. The effect of this positive news was visible as soon as the market opened in the morning and all-round buying was seen in the Indian stock market. The market, which was under pressure for weeks, suddenly seemed to be gaining momentum, where the Sensex opened with a huge jump of about 2600 points, while the Nifty also jumped by more than 700 points. As soon as there were signs of reduction in global tensions, investor confidence returned and vigorous buying was seen in the market, due to which the atmosphere of the entire Dalal Street changed completely.
As soon as the market opened on Wednesday morning, there was a buying spree among investors. Sensex reached the level of 77,312 with a huge gain of 2,696 points. At the same time, NSE Nifty also did not lag behind and crossed 23,890 with a gain of 767 points. As soon as the market opened, about 2,534 shares were seen rising, while only 166 shares were trading with a decline.
These stocks won
In today’s greenery, the biggest beneficiaries have been those companies which are directly related to oil or infrastructure. There was a huge jump in the shares of InterGlobe Aviation (IndiGo) due to the news of oil becoming cheaper. Apart from this, stocks like L&T, Shriram Finance, Adani Ports and Adani Enterprises were among the top gainers of Nifty. On the other hand, stocks like ONGC and Coal India were under pressure due to falling oil prices and were seen trading in the red.
Why did this stormy rise come in the market?
The biggest reason behind this huge increase is global relief. After Trump’s ceasefire announcement, crude oil prices have fallen by 20%. Since India imports most of the oil it needs, cheap oil is no less than a booster dose for the Indian economy. This has raised hopes of reducing inflation and reducing costs of companies, due to which investor confidence has suddenly returned. Experts believe that if this ceasefire situation remains stable and the talks with Iran are successful, then the Indian market may soon break its old life-time high records. At present, there is an all-round buying environment in the market and stocks ranging from banking to IT sector are shining in the green.
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
