Amidst the announcement of the end of ‘Operation Epic Fury’ between the US and Iran and ongoing speculation about a final deal, there was a tremendous rise in the stock market on Wednesday. Benchmark indices opened with significant gains. After opening, the Sensex gained nearly 600 points. Nifty also climbed almost 200 points and crossed the level of 24,200. Bank Nifty also gained momentum today and gained more than 700 points. The broader market was also trading in the green.
At 9:26 am, the Sensex was trading at 77,456, up 440 points. Nifty was around 24,186 with a gain of 150 points. Bank Nifty was at 55,230 with a gain of 700 points. The midcap index gained more than 1 percent, while the smallcap index also gained 0.7%. On Nifty, except FMCG, all other sectoral indices were trading in positive territory. PSU Bank index gained 2%. Sectors like Auto, NBFC, IT, Metals and Private Bank saw a growth of 1% or more. Market sentiments have been strengthened by expectations of a US-Iran deal, falling crude oil prices and record-breaking gains in global markets. Although selling by FIIs (foreign institutional investors) continues, domestic funds remain in support.
Hopes for US-Iran deal: Trump’s big statement
Donald Trump has given a very positive statement regarding Iran. He said considerable progress has been made toward reaching a “full and final agreement” between the US and Iran. In anticipation of the deal being signed, ‘Project Freedom’ has been temporarily put on hold; However, the economic blockade will continue. This development indicates a possible reduction in geopolitical tensions.
GIFT Nifty scored ‘double century’, indicating a strong start
Driven by hopes of US-Iran deal, GIFT Nifty is trading above 24,300 level with a rise of more than 200 points. Dow Futures have also seen a gain of about 125 points. While Japanese markets are closed, global signals are clearly positive.
Fall in crude oil prices: A matter of relief for the market
Expectations of an agreement—as well as continued observance of the ceasefire—have led to a sharp decline in crude oil prices. Brent Crude has fallen almost 6% to around $108. This fall in oil prices is a big relief for oil-importing countries like India, and is being considered a positive sign for the broader market.
Record rise in American markets
Driven by falling oil prices and hopes for a diplomatic solution, US markets have seen a strong surge. The Nasdaq rose 250 points to its all-time high; S&P 500 hits a new all-time record; And Dow closed with a gain of 350 points. This positive trend is also expected to support Indian markets.
Confusion continues in the Middle East
For the second consecutive day, the UAE has accused Iran of being involved in the attacks, while Iran has strongly denied any involvement in the attacks. Iran says US forces are responsible for recent incidents. There is uncertainty due to this situation; However, at present there are no reports indicating that the ceasefire has been broken.
Rise in gold and silver prices
Amid global geopolitical turmoil, gold prices gained ₹400 and closed around ₹149,800 levels; Whereas silver rose by ₹ 400 to reach the level of ₹ 244,300. Demand for both these precious metals remains stable as investors continue to buy them as ‘safe-haven assets’.
FII selling continues; DII provided support
Foreign institutional investors (FIIs) made net sales totaling ₹5,167 crore in the cash, index futures and stock futures segments. In contrast, domestic institutional investors (DIIs) provided significant support to the market with net purchases of ₹2,603 crore—the eighth consecutive day of buying.
Focus on today’s results
Today the results of Bajaj Auto will be released for the Nifty index, while in the F&O segment the focus will be on the earnings of many companies including CG Power, Godrej Consumer, Paytm, PB Fintech and Polycab. L&T has delivered strong results in line with expectations, while Coforge, Hero MotoCorp and SRF have also performed well.
Government decisions and corporate updates
The Cabinet has approved the ₹18,100 crore Emergency Credit Line Guarantee Scheme. A fair and remunerative price (FRP) of ₹365 per quintal has been fixed for sugarcane farmers. Meanwhile, Kumar Mangalam Birla has been appointed non-executive chairman of Vodafone Idea, effective May 5. Apart from this, the US Ambassador to India has said that India is preparing to make big investments in America.