Sensex up 800 points, Nifty over 24,200: What's driving surge?
What's the story
The Indian stock market witnessed a major surge today, with the Sensex gaining over 800 points and the Nifty rising above 24,200. The rally was mainly driven by US President Donald Trump's remarks hinting at an end to the Iran conflict and a sudden drop in crude oil prices. The positive market sentiment resulted in gains across most sectors, boosting overall market capitalization.
Boost
Top gainers on Sensex
The rally added over ₹4.7 lakh crore to the total market capitalization of all BSE-listed companies, taking it to ₹445.51 lakh crore by this morning. Top gainers on Sensex included IndiGo, Asian Paints, UltraTech Cement, L&T, Tata Steel, and Adani Ports shares which rose 2-3%.
Market factors
Trump hints at end of Iran conflict
Trump's comments on the Iran-Israel war and plans to lift sanctions on some countries have possibly boosted risk-on sentiment in the markets. Meanwhile, crude oil prices plunged sharply today after a blistering rally that saw them crossing the historic $100-mark for the first time since Russia's invasion of Ukraine in 2022. The drop came after Trump hinted that the war with Iran might be coming to an end, cooling off tensions in the region.
Price drop
Crude oil prices fall sharply
Brent crude futures fell nearly 10% to $89.32 per barrel, while US West Texas Intermediate (WTI) crude fell over 9% to $86.07 per barrel. The fall in oil prices comes as geopolitical tensions had earlier pushed them up due to fears of supply disruptions through the Strait of Hormuz, a key transit route for global oil supplies.