Today there was tremendous growth in the stock market. Sensex jumped nearly 1400 points, while Nifty 50 also reached above 24,250. Investors’ faces lit up as several major factors combined to give “rocket speed” to the market.
Relief from US-Iran talks
The biggest reason was the possible peace talks between America and Iran. When there is hope of less tension in the world, a positive environment is created in the market. This news increased the confidence of investors and buying intensified.
Fall in crude oil prices
The price of Brent crude fell below $100 to around $95. This is a big relief for a country like India because we import more oil. Cheap oil means cheap transportation, and this also means less expenses for companies—which means a boom in the stock market.
Support received from the strength of rupee
Due to cheap oil and weakening of dollar, the rupee also strengthened. Strong rupee means cheaper imports and support to the economy. Due to this, the positive sentiment in the market became stronger.
Global market also supported
The effect of the rise in the American market (Nasdaq, S&P 500) was also visible on the Asian markets. The markets of Japan, China and Hong Kong remained in the green, which also gave a boost to the Indian market.
Less fear, more trust (India VIX fell)
India VIX i.e. the “fear index” of the market fell by about 10% to 18.57. This means that investors’ fear has reduced and they are ready to take more risks.
Read Also: How much loss will India suffer if the Iran-US war continues for a long time? Know the complete economic picture
Which sectors created a stir?
Strong buying was seen in IT and metal sectors. Shares of banking and oil companies also remained on the rise. Large companies like L&T, HDFC Bank and IndiGo performed well.
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