Indian stock markets experienced a significant rally, with the Sensex surging by 940 points, propelled by a sharp decline in crude oil prices and positive signals from US-Iran negotiations. The optimism surrounding a potential agreement to end the war seemingly fueled investor confidence, leading to heavy buying in the market’s closing hours. The 30-share BSE Sensex closed at 77,958.52, marking a 1.22 percent increase. During the day’s trading, it reached a high of 78,022.78, reflecting a 1.30 percent surge.
The NSE Nifty also mirrored the positive trend, rallying by 298.15 points, or 1.24 percent, to conclude at 24,330.95. The overall bullish sentiment was further bolstered by positive trends observed in global markets, contributing to the robust performance of domestic stocks. As per information available with TahirRihat.com, the surge in the Indian markets reflects a broader global response to easing geopolitical tensions and the prospect of stabilized oil prices.
Among the top performers within the 30-Sensex firms, InterGlobe Aviation, Trent, Asian Paints, State Bank of India, HDFC Bank, and Eternal recorded notable gains. Conversely, Reliance Industries, Larsen & Toubro, Power Grid, and NTPC lagged behind in the day’s trading session. The market’s upward trajectory was heavily influenced by developments in the international arena, particularly those concerning US-Iran relations.
Former US President Donald Trump announced the suspension of “Project Freedom,” an initiative to escort ships through the Strait of Hormuz, citing advancements in negotiations with Iran aimed at achieving a comprehensive agreement to end the conflict. Trump conveyed this through a post on Truth Social, stating, “Great progress has been made toward a complete and final agreement with representatives of Iran.” He added, “Based on the request of Pakistan and other Countries…we have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom…will be paused for a short period of time to see whether or not the Agreement can be finalized and signed.”(Trump said via Truth Social).
According to Trump, the decision to pause Project Freedom, which was initiated to safeguard ships stranded due to the Strait of Hormuz closure, was a collaborative effort influenced by Pakistan and other nations. The timing of Trump’s statement coincided with an announcement by former US Secretary of State Marco Rubio regarding the conclusion of Operation Epic Fury, which commenced on February 28. “Operation Epic Fury is concluded. We achieved the objectives of that operation,” Rubio stated at a White House press conference. However, Rubio clarified that the US prefers a peaceful resolution but a deal has not materialized yet.
The optimism surrounding a potential US-Iran agreement had a tangible impact on oil prices, with Brent crude, the global benchmark, plummeting by 8 percent to USD 101.1 per barrel. This decline in crude oil prices provided immediate relief to import-dependent economies like India, according to market analysts. Hariprasad K, Research Analyst and Founder of Livelong Wealth, noted that “The trigger was largely global – renewed optimism around a potential US–Iran peace deal led to a sharp decline in crude oil prices, offering immediate relief to an import-heavy economy like India.”
Across Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index all closed higher, with Kospi experiencing a surge of over 6 percent. European markets also exhibited strong gains, while US markets concluded Tuesday’s trading session in positive territory. Despite the overall positive sentiment, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,621.58 crore on Tuesday, according to available exchange data.
The previous day, Tuesday, saw the Sensex decline by 251.61 points, or 0.33 percent, to settle at 77,017.79, while the Nifty edged lower by 86.50 points, or 0.36 percent, to end at 24,032.80. The stock market’s robust performance reflects a confluence of factors, including encouraging developments on the international stage and the subsequent effect on key economic indicators such as crude oil prices. The potential for eased geopolitical tensions and stabilized energy markets has instilled confidence among investors, driving the market to new heights.
Tahir Rihat (also known as Tahir Bilal) is an independent journalist, activist, and digital media professional from the Chenab Valley of Jammu and Kashmir, India. He is best known for his work as the Online Editor at The Chenab Times.
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