After a volatile start to the morning, Sensex and Nifty gained such momentum that the entire “game” was turned upside down in just 130 minutes. From its intraday low, Sensex surged over 1,000 points to its intraday high in just 130 minutes. As a result, stock market investors made a total profit of ₹7.43 trillion (7.43 lakh crore) during this period. In fact, the impact of the huge fall in international crude oil prices—which seemed like a “lower circuit”—is clearly visible in the movements of Sensex and Nifty. Crude oil coming from Gulf countries is currently trading with a decline of about 7%. On the other hand, the Indian Rupee is also strengthening against the US Dollar.
Meanwhile, it has also been reported that President Trump has halted “Operation Freedom”—an initiative aimed at rescuing ships stranded in the Strait of Hormuz. Trump said that much progress has been made in peace talks with Iran. This development created a bullish atmosphere in the Indian stock market. Especially a tremendous rise is being seen in the shares of the banking sector; Big banks like HDFC and SBI are currently trading with a gain of around 3%.
Tremendous rise in Sensex and Nifty
The rise in Sensex and Nifty started shortly after 1:00 pm, and both the indices hit their day’s highs around 3:00 pm. During the trading session, the Bombay Stock Exchange’s benchmark index—Sensex—crossed the 78,000-mark. According to the data, Sensex jumped 1,004.99 points to reach the level of 78,022.78. However, at the start of the morning session, the market turned lower after the initial rally, with the Sensex falling 244.54 points to 76,773.25. On the other hand, the National Stock Exchange’s benchmark index, Nifty also jumped by almost 325 points during the trading session to reach the level of 24,356.50 points. Earlier, a huge fall was recorded in Nifty, which touched a low of 23,997.90 points. Since then, the index has recovered 358.6 points. According to market experts, Sensex and Nifty may see further rise in the coming days.
Main reasons for recovery in stock market
**US-Iran conflict expected to end:** According to a report by Axios, the US and Iran are close to an initial agreement that could end the ongoing conflict and pave the way for broader nuclear talks. **Strong buying in banking stocks:** The biggest rise in banking sector stocks was seen when the government approved a credit guarantee program. The purpose of this program is to provide relief to companies affected by the conflict with Iran. The Bank Nifty index rose up to 1% and breached the 56,000-mark, while the Nifty Private Bank index gained 2.37% and the Nifty PSU Bank index gained 2.8%.
**Fall in crude oil prices:** A decline was recorded in the prices of crude oil. Brent crude was down 7% to trade at around US$102 per barrel—down from around US$115 per barrel recorded earlier in the week. Low crude oil prices are generally considered good for stock markets and the local currency.
**Strong Global Signals:** Asian markets—including South Korea’s KOSPI and Hong Kong’s Hang Seng—were trading higher, while US markets also closed higher on Tuesday.
**India VIX falls:** India VIX, an indicator of market volatility, fell more than 5% to close at 17 points. This is a sign of reduction in investor nervousness and improvement in risk appetite. ** Rupee strengthened: ** Rupee strengthened due to fall in crude oil prices and easing geopolitical tensions. Rupee strengthened by 23 paise to 94.95 against US dollar. Earlier, the rupee was trading at 95 against the dollar for two consecutive days.