On the first trading day of the week, the Indian stock market has given investors a big reason to smile. As soon as the market opened on Monday morning, it seemed as if greenery covered Dalal Street. Both the major indices Sensex and Nifty have started the week on a strong note. On one hand, Sensex registered a huge jump of 919 points intra-day and touched the level of 76,334, while Nifty also crossed the important figure of 23,900.
The market got excited due to the sound of American agreement
This wonderful recovery in the market is directly linked to international diplomacy. In fact, there are clear signs of reduction in the ongoing tension between America and Iran. US President Donald Trump has claimed through a social media post that both the countries have come very close to a major agreement. The biggest benefit of this possible reconciliation will be that the important trade route of ‘Strait of Hormuz’ can be reopened to the world. This news has filled a new enthusiasm among global investors. American stock markets closed at record highs overnight, heavy buying was seen in European markets and similar celebrations were seen in Asian markets this morning. This global positivity has also pulled our domestic market up rapidly.
decline in crude oil
The second biggest reason for this rally in the stock market is the huge fall in the prices of crude oil. Just on the hope of reopening of the Strait of Hormuz, Brent crude has fallen by almost 5 percent in the international market to the level of $ 98 per barrel. India imports most of its crude oil needs. In such a situation, the fall in oil prices is no less than a big relief for our economy. Due to cheaper crude oil, transportation cost decreases and the hope of keeping inflation under control increases, the direct benefit of which falls on the pocket of the common man. Amidst this strong business environment, today the Indian Rupee also opened with a strong rise of 35 paise at 95.35 against the dollar.
Most action was seen in these shares
Amidst this all-round boom in the market, shares of many big companies have filled the pockets of investors. On the Nifty index, heavy buying was seen in big stocks like Eicher Motors, Shriram Finance, Mahindra Group, Adani Enterprises as well as HDFC Bank. On the other hand, profit booking pressure was also seen in some stocks like Hindalco, Sun Pharma, TCS, ONGC. Apart from this, today the eyes of the market are also fixed on the fourth quarter (Q4) results of the companies. Many big companies including Suzlon Energy, Rail Vikas Nigam Limited (RVNL), NBCC are going to release their results today.
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Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.
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