Indian Stocks Rally: US-Iran Ceasefire Boosts Equities, Crude Oil Dips
By Market Desk
Indian stock markets surge as US-Iran tensions ease and crude oil prices plummet. Sensex and Nifty50 open higher, reflecting positive global sentiment.
Indian benchmark indices Sensex and Nifty50 opened significantly higher on Monday, influenced by positive global cues and a substantial drop in crude oil prices. This market rally was primarily attributed to an easing of geopolitical tensions in West Asia, following reports of a ceasefire between the United States and Iran.
Key Market Indicators
- GIFT Nifty traded at 23,931, up 124 points, indicating a positive opening.
- Sensex opened around 76,650, gaining almost 600 points. By 9:00 AM, it was up 0.62% at 76,530.15.
- NSE Nifty50 began trading near 23,950, up over 150 points. By 9:00 AM, it was up 0.24% at 23,825.25.
- Brent crude dropped by as much as 7.44% to an intraday low of $89.58 per barrel. The July Brent futures contract was down 4.28% at $92.44 per barrel.
- Gold futures traded 0.88% higher, and silver futures advanced 1.88%.
The rebound follows a volatile previous week, which saw Nifty fall 2.33% and Sensex shed over 2,000 points due to geopolitical uncertainty and profit booking. Improved investor sentiment resulted directly from the sharp fall in crude oil prices.
Global Market Performance
Most Asian markets also advanced on Monday, reacting positively to the de-escalation in West Asia. Japan’s Nikkei 225 gained 0.35%, and Hong Kong’s Hang Seng advanced 0.58%.
Conversely, US markets showed a mixed performance on Friday. The Dow Jones Industrial Average and S&P 500 recorded slight gains, while the Nasdaq Composite slipped.
Analyst Outlook
Shrikant Chouhan, Head of Equity Research at Kotak Securities, advised caution despite the rally. He noted that the broader market structure remains fragile after the significant correction observed last week.
Chouhan highlighted that the Nifty’s slip below its 20-day simple moving average signals near-term weakness. The 50-day moving average acts as crucial resistance, suggesting market sentiment will likely remain cautious below these levels. A sustained move above these resistance points could trigger a recovery.