Good growth was seen in the Indian stock market on Tuesday, March 10. After falling in two consecutive sessions, both Sensex and Nifty 50 were down 3 percent. This surge in the market occurred after US President Donald Trump indicated that the war in West Asia was about to end. The Sensex closed 640 points or 0.82 per cent higher at 78,205.98, while the Nifty 50 closed 234 points or 0.97 per cent higher at 24,261.60.
Mid and small-cap segments performed well. The BSE 150 Midcap index rose 1.66%, while the BSE 250 Smallcap index rose 2.04%. Investors earned Rs 6.50 lakh crore in a single session as the total market capitalization of BSE-listed firms rose to about ₹447 lakh crore from ₹441 lakh crore in the previous session. Let us also tell you what are those 5 reasons due to which there has been a rise in the stock market.
US and Israel jointly attacked Iran on 28 February. The fighting is in its second week, but it seems that the market has started to underestimate the hope of the war ending soon. US President Donald Trump said on Monday that the US-Iran war could end soon because Tehran's Air Force and Navy have suffered huge losses. According to news agency Reuters, Trump estimated that this fight could end much earlier than his earlier stated time frame of four weeks.
Crude oil prices fell sharply after Trump said the US-Iran war could end soon. Trump also said he was considering sending the US Navy to escort oil tankers through the Strait of Hormuz to help keep oil prices under control and lift sanctions. Meanwhile, according to reports, the G7 countries group said on Monday that the group is ready to take “necessary steps” such as stockpile release to support global energy supply. Around 3:30 pm IST on Tuesday, Brent crude was down nearly 9% and was trading at $90 per barrel. The fall in crude oil prices was a big relief for investors in the Indian stock market, because the rise in crude oil prices had a serious impact on the domestic macro condition.
A good rise in the Indian rupee from record low also impacted the stock market sentiment. According to Bloomberg data, the Indian rupee increased by 53 paise to close at 91.8050 per dollar on Tuesday. On Monday, the rupee fell 58 paise to close at 92.33 against the US dollar, which was at an all-time low of 92.3575, amid concerns of US-Iran war and rise in crude oil prices.
Major indices like Nifty Bank, Financial Services, Auto and Pharma rose on Tuesday due to value buying in quality stocks of these segments after the recent correction. Nifty Auto jumped more than 3 percent, while the PSU Bank index rose more than 2 percent. Nifty Bank and Financial Services rose almost 2 percent. Pharma pack rose 1.4 percent. Nifty IT (down 0.46%) was the only major sectoral index on NSE to end in the loss. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said, "With the correction in the market, stock prices, especially of large caps, have become reasonable. There are good prospects in sectors like financials, automobiles, pharmaceuticals and defence.
The dollar index fell more than half a percent, and the benchmark 10-year US bond yield fell to about 4 percent from 4.2 percent in the previous session, suggesting investors' rush to safety has eased and risk appetite has improved amid signs of easing geopolitical and geoeconomic risks.
