A tremendous rise was seen in the stock market on the last trading day of the week. This surge came after the news of peace agreement between America and Iran. Following this announcement, the Sensex rose 1,695 points (2.30%) to 75,527.95. Similarly, Nifty closed at 23,622.90, up 461.30 points (1.99%).
Bank Nifty saw even bigger gains, jumping 1,638 points (2.97%) to close above 56,800. Due to this rise in the market, all the indices remained in the green, due to which investors got good benefits. Among the top 30 stocks on BSE, except PowerGrid and Tech Mahindra, all the others saw good gains. Bajaj Finance was the leader with gains of 5.62%, followed by L&T, Indigo, Titan and other shares which gained up to 5%.
** Assets worth ₹ 10 lakh crore increased today **
Mid-cap and small-cap indices also witnessed huge gains, leading to handsome profits for everyone from retail to institutional investors. With this surge, the market capitalization of BSE increased by almost ₹10 lakh crore from ₹452.66 lakh crore to more than ₹462 lakh crore.
**What was the reason for the rise in the market?**
Iran’s state news agency, Mehr, reported that the proposed Memorandum of Understanding (MoU) between Tehran and Washington includes lifting sanctions, ending the US naval blockade of the Strait of Hormuz and withdrawing US military forces deployed around Iran. Meanwhile, US President Donald Trump said that the agreement to end the conflict with Iran is nearing completion and is expected to be signed this week. The announcement came just hours after Iran threatened to take over its oil industry.
After this news, a huge surge was seen in the American markets. American markets closed with good gains, and today its effect is also visible on the Indian market, where trading is in a bullish trend. Moreover, other factors also contributed to the market rally.
*Fall in crude oil prices**
The price of Brent crude oil fell 5 percent to $86.4 a barrel, near its lowest level in the past two months. This huge fall led to a rise in the shares of those companies which are dependent on crude oil. Meanwhile, Asian markets also gained momentum; South Korea’s KOSPI index rose more than 8 percent and Japan’s Nikkei 225 index rose more than 3 percent. China’s Shanghai SSE Composite and Hong Kong’s Hang Seng Index were also trading with gains.
** Rupee strengthened **
The rupee strengthened by 65 paise to reach 95.20 against the US dollar. Global crude oil prices fell after signs of a possible agreement between the US and Iran. According to forex traders, a weak dollar and positive trends in domestic stock markets also strengthened the rupee.
