Strong surge in stock market due to Trump’s ‘peace signal’, Sensex rises 1000 points, pressure on rupee continues

digital desk- Investors got a big relief in the Indian stock market on Tuesday. The market, which has been struggling with global tension and uncertainty for weeks, witnessed tremendous growth today. Even before the start of trading, there were indications that the market could open in the green and that is what happened. In the pre-opening session, the Sensex jumped by around 1500 points, however by the time the market opened this gain reduced a bit and stabilized around 1000 points. Nifty 50 also made a strong start and crossed the level of 22,800. The buying enthusiasm among investors was clearly visible.

Support received from global signals

The biggest reason behind this rise in the market was the global relief. In particular, a statement by Donald Trump reduced the concerns of investors to a great extent. After his ‘peace signal’, the fears of war weakened a bit, which created a positive atmosphere in the global markets. American markets also witnessed a spectacular rise on Monday. Both the S&P 500 and NASDAQ recorded gains. Although the momentum was limited due to Iran’s refusal to engage in direct talks, investors’ confidence remains intact. Experts believe that due to positive global signals, investors have returned to the Indian market. In the last few weeks, there was pressure on the market due to geopolitical tensions, but now there are signs of improvement in the environment. Good buying was seen in shares of banking, IT and metal sectors.

pressure on rupee

While on one hand there was a rise in the stock market, on the other hand there was pressure on the Indian currency. The Indian rupee weakened to 93.71 against the dollar. However, later there was a slight recovery and it was seen trading around 93.64. According to experts, the rupee remains under pressure due to global uncertainty and the strength of the dollar. Apart from this, fluctuations in crude oil prices are also affecting the currency.

What will be the trend going forward?

Market experts say that if peace talks progress at the global level and tensions reduce, then the bullish trend in the Indian market may continue. However, investors are being advised to remain cautious, because any change in geopolitical developments can have an immediate impact on the market.