The domestic equity market welcomed the 2 week ceasfire announcement between the US and Iran with key equity indices soaring over 3 per cent in early trade. At the time of writing, the BSE Sensex was trading at 77,131.70, up 2,515.12 points or 3.37 per cent. Nifty 50 quoted at 23,861.90, up 738.25 points or 3.19 per cent.
From the 30-share BSE index, Indigo, Mahindra And Mahindra, L&T, Maruti, Ultratech Cement, Bajaj Finance, Bajaj FinServ, Adani Ports, Eternal, Axis Bank, HDFC Bank and ICIC Bank were the top gainers. Sun Pharma, Tech Mahindra, and Infosys traded lower.
At the sectoral front, Nifty Fin Service and Nifty Bank were up 4 per cent in early trade. Nifty Auto skyrocketed over 6 per cent. Broader Indices were trading significantly high. Nifty Small Cap 100 and Nifty Midcap 100 were up over 3.5 per cent. Nifty 100 and Nifty Next 50 were up 3.5 per cent and 4 per cent, respectively.
According to an expert, the 2-week ceasefire between the US and Iran has dramatically altered the near-term market scenario.
"The crash in Brent crude to $ 95 following the ceasefire will again turn the market bullish. This ceasefire, particularly the agreed reopening of Hormuz Strait, will embolden the bulls to charge again, aided by the fair market valuations," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
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"The policy stance will continue to be neutral. The upside risk to inflation and the downside risk to growth can now be managed well. Rupee will strengthen, and this may even force the FPIs to turn buyers; at least they will have to cease the sustained selling, which will become irrational in the present context," Vijaykumar noted.
This is a developing story...