Stock Market Today: As West Asia tension eases, crude oil prices fall, stock market rises, Sensex rises 566 points
Mumbai. The positive effect of reducing tension in West Asia and sharp fall in crude oil prices was seen on the domestic stock markets on Monday. On the first trading day of the week, both the major indices BSE Sensex and NSE Nifty opened with strength in early trade.
In early trade, BSE Sensex rose by 566 points to reach the level of 76,608.66. At the same time, NSE Nifty was seen trading up by 153.60 points at 23,923.30.
Market experts believe that the halt in military action between America and Iran over the weekend has strengthened investor confidence. Along with this, the sharp fall in global crude oil prices has increased India’s hopes of reducing inflationary pressure, improving current account situation and strengthening of the rupee.
Rajesh Palviya, head of research at Axis Direct, said that due to reduced tension in West Asia, fears of oil supply disruption have reduced, which has had a positive impact on market sentiment.
Among the Sensex companies, shares of InterGlobe Aviation, Infosys, Eternal, Asian Paints, Bajaj Finance and Bajaj Finserv registered good gains. However, there was a decline in the shares of Bharti Airtel and ICICI Bank.
In the global market, the price of Brent crude fell by about four percent to $ 92.84 per barrel. V.K., chief investment strategist at Geojit Investments Ltd. According to Vijayakumar, if tensions in West Asia subside further and crude oil prices continue to soften, the domestic stock market may remain positive.
Meanwhile, foreign institutional investors (FIIs) sold shares worth a net Rs 3,892.77 crore on Friday.
In Asian markets, South Korea’s Kospi remained in decline, while Japan’s Nikkei-225, China’s SSE Composite and Hong Kong’s Hang Seng index were trading with gains. At the same time, American stock markets had mostly closed strongly in the last trading session.
It is noteworthy that on Friday, BSE Sensex had fallen by 331.62 points and closed at 76,059.77 points, while NSE Nifty had slipped by 102.15 points and closed at 23,767.45 points.
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