• Source:JND

Stock Market Today: The domestic equity indices soared significantly high in the early trade on March 10 after plummeting nearly 2 per cent in the previous trade. The rally was fueled by a sharp decline in crude prices this morning after it reached nearly $120, surging over 25 per cent due to panic situations in the Middle East in the last trading session.

BSE Sensex started the session with a huge gap-up at 78,375.73 as compared to the last session's closing of 77,566.16, while NSE's Nifty opened at 24,280.80, up around 250 points against the last session's closing of 24,028.05.

"Indian equity markets opened on a mildly positive note, supported by improving global sentiment following signs of easing geopolitical tensions in the Middle East. Comments from Donald Trump suggesting that the U.S.–Israel conflict with Iran could end soon have triggered a pullback in crude oil prices and a softer U.S. dollar, helping improve overall risk appetite across global markets," said Ponmudi R, CEO of Enrich Money.
 
Despite the positive start, investor sentiment remains cautious, and markets are likely to remain volatile in the near term as participants continue to monitor geopolitical developments and broader global macro cues, he said. 

At around 9:37 AM, Nifty50 was trading at 24,105.35, up 77.30 points or 0.32 per cent, while Sensex was at 77,841.04, down 274.88, 0.35 per cent.

Indigo, Mahindra and Mahindra, Ultratech Cement, Asian Paint, ICICI Bank, Adani Ports, Kotak Bank, SBI, HDFC Bank, Trent, Titan were the top gainers from the Sensex basket. Infosys, Reliance, Bharti Airtel, ITC, Tech Mahindra, BEL, TCS were trading lower.

Why the Stock Market Is Up

The Brent crude price fell sharply below $100 per barrel. It was trading at $93.85 per barrel, down over 5 per cent from the last day's closing.  

"Extreme volatility in crude prices has triggered heightened volatility in stock markets, too, across the world. The panic reaction in crude prices, which took the Brent crude to near $120 yesterday, has seen a reversal this morning, plunging Brent crude to $89. This kind of extreme swing of nearly $30 in one day is reflective of the huge uncertainty surrounding the impact of the West Asian conflict on global crude supplies. During a war, uncertainty reigns supreme and this is what we are witnessing now. Unexpected developments can again impact crude prices and thereby stock markets, too," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Meanwhile, value buying has also emerged as a factor behind today's rally. 


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