Domestic equity markets in India opened significantly higher following US President Donald Trump’s announcement of finalizing a deal with Iran and the reopening of the Strait of Hormuz. The Sensex started with a surge of about 1,200 points or 1.6%, reaching 76,725.27, while the Nifty opened around 360 points or 1.53% higher at 23,984.85.
In sectoral terms, Nifty Realty saw a notable increase of 2.59%, followed by Nifty Cement with a gain of 2.46%, and Nifty Auto advancing by 1.92%. Other major gainers included Nifty Consumer Durables (up 1.85%), Nifty Oil & Gas (up 1.83%), and Nifty PSU Bank (up 1.77%). However, healthcare stocks performed poorly, with Nifty Pharma declining by 0.17% and Nifty Healthcare slipping by 0.05%.
Market experts attribute the positive market outlook to reduced tensions in West Asia and the significant drop in crude oil prices, which have positively impacted the Indian economy and equities. The easing of geopolitical tensions and the decline in Brent crude prices to below $84 are seen as favorable indicators for the Indian economy and stock market.
International benchmark Brent crude saw a nearly 5% decrease to $83.05 per barrel, while US West Texas Intermediate (WTI) crude fell by 5.74% to around $80 per barrel. Asian markets also experienced gains, with Japan’s Nikkei rising over 5%, South Korea’s KOSPI increasing by about 5%, and Hong Kong’s Hang Seng advancing by 0.5%.
Trump, via Truth Social, confirmed the completion of the deal with Iran, emphasizing that it would bring “peace and security” to the region. Additionally, he announced the reopening of the Strait of Hormuz and the lifting of the US naval blockade, developments that investors believe will contribute to stabilizing global energy supplies.
