Today, Thursday, the stock market had a strong start. Sensex jumped by 500 points in the early session. Nifty also rose by about 140 points and was trading around 24,400. Bank Nifty was also up by about 420 points. The market got support from buying activities in IT and banking stocks. The metal index also increased by more than 1 percent.
Before the markets opened, global cues were looking quite positive. The easing of tensions between the US and Iran, news of the reopening of the Strait of Hormuz, US markets hitting record highs, and the rise in GIFT Nifty—all these signs point to a strong start for the market. Let’s take a look at today’s key market triggers that could dictate market direction throughout the day. GIFT Nifty is trading around 24,350, up about 125 points. Dow Futures are also trading in the green, while markets in Japan and Korea are trading with gains of about 1.5%. These factors indicate a strong start for Indian markets. US President Donald Trump has indicated that the conflict with Iran may end soon. He said Iran is ready for a deal; Meanwhile, the White House has also talked about extending the ceasefire and discussing the second round of talks. This has brought a sense of relief to the global market environment.
Announcement of reopening of the Strait of Hormuz
Trump has announced that the Strait of Hormuz will be kept open permanently. He further said that China is also happy with this decision and will no longer supply arms to Iran. This news is extremely important for oil supply and has raised hopes for stability in energy markets.
Focus on India-US trade agreement
A trade agreement between India and America may soon be finalized. Starting on April 20, officials from both countries will meet face-to-face in Washington DC to discuss the framework and timeline of the agreement. This agreement can prove to be a big positive trigger for the Indian markets.
US market at record high
There was a tremendous rise in American markets, the main reason for which was the rise in technology stocks. The Nasdaq rose for the 11th consecutive day and closed at an all-time high, while the S&P 500 passed 7,000 for the first time. Although there was a slight decline in Dow Jones, the overall market mood remained strong.
softening of crude oil
Crude oil prices are showing signs of weakness; This is because of the reopening of the Strait of Hormuz and expectations of reduction in conflict. Brent crude has stabilized below the $95 level. This may provide some relief from inflationary pressure—the market is viewing this development positively.
