Stock Market Today: The Indian stock market closed sharply higher on Tuesday, following a rally in global markets amid signs of de-escalation in the US-Iran war.
Sensex ended at 74,068.45, up 1372.06 points or 1.82% after broad-based buying. Nifty 50, meanwhile, closed at 22,912.40, up 400 points or 1.78%. In the opening deals, the benchmark indices gained over 2%.
The rally in markets globally, including in India, came after the US President Donald Trump extended his deadline for Iran to reopen the Strait of Hormuz. He said that the US will hold off striking Iranian power plants for five more days, and that US envoys have been holding talks with a “respected” Iranian leader, and Iran wants “to make a deal.” However, Iranian officials denied any such negotiations.
On the global front, Asian markets also ended higher, tracking the overnight rally in US stocks, after the US postponed strikes against Iranian power plants. However, US stock futures signalled a tepid start for Wall Street today.
Vinod Nair, Head of Research, Geojit Investments, said that the domestic market witnessed a relief rally following a temporary pause in attacks on Iran’s energy infrastructure, which could lead to further leeway in easing West Asia–related tensions. However, he added that caution persists as investors await greater clarity on the developments around the Strait of Hormuz.
“The resulting supply chain issues are unlikely to have a lasting impact on markets and may be limited to a one- to two-quarter disruption in earnings. Meanwhile, domestic fundamentals remain strong, supported by monetary and fiscal measures that are expected to drive demand once external uncertainties ease,” Nair added.
Crude Oil Prices
Crude oil prices rose on supply fears, as Iran denied it had held talks with the US to end the war in the Gulf. Brent futures rallied 2.03% to $101.97 a barrel, while US West Texas Intermediate (WTI) climbed 2.92% to $90.70.