Sensex jumps 1,300 points on falling crude prices, US-Iran talks
What's the story
India's benchmark stock indices, the Sensex and Nifty, opened sharply higher on Wednesday. The surge comes after a decline in crude oil prices and renewed hopes of US-Iran talks. At 10:45am, the Sensex was up by 1,313 points or 1.7% at 78,160 while the broader Nifty rose to a high of 24,254, up by 412 points.
Market overview
Top gainers and losers
The market witnessed a broad-based rally with InterGlobe Aviation leading the charge with over 4% gains. Other major gainers included Hindalco, Shriram Finance, UltraTech Cement, Adani Enterprises, Infosys and Larsen & Toubro—all rising between 2% and 3.5%. Dr Reddy's Laboratories emerged as the top loser with a decline of about 2.7%.
Global influence
Global cues
The positive start of the Indian market was aided by a firm trend in GIFT Nifty, signaling a gap-up opening on improving global cues. Asian markets were trading higher while Wall Street extended gains overnight. The NASDAQ rose 2% marking its 10th consecutive day of gains with S&P 500 nearing record highs. Crude oil prices declined for the second consecutive session with Brent falling below $95 per barrel amid reports that US-Iran talks could resume soon.
Expert opinion
Market expert's opinion
VK Vijayakumar of Geojit Investments said, "Hopes of resumption of US-Iran talks and the sharp fall in Brent crude augur well for markets in the near term." He added that global markets seem to be pricing in an eventual end to the conflict. Despite a strong opening, experts warn that rally sustainability will depend on continued positive geopolitical developments and sustained buying interest.