The Indian stock market saw healthy gains in early deals on Tuesday, March 10, after two consecutive sessions of losses that dragged the Sensex and the Nifty 50 down 3% each. The market rebound followed U.S. President Donald Trump’s hint that the war in West Asia could be nearing an end.
The Sensex jumped more than 950 points to an intraday high of 8,526.25, while the Nifty 50 climbed more than 1% to the day’s high of 24,303.80.
However, the indices pared gains quickly. The Sensex was 382 points, or 0.49%, up at 77,948, while the Nifty 50 was 130 points, or 0.54%, up at 24,158 around 9:20 am.
Investors earned ₹4 lakh crore within minutes as the overall market capitalisation of BSE-listed firms rose to ₹445 lakh crore from ₹441 lakh crore in the previous session.
Why is the Indian stock market rising today?
Let’s take a look at five key factors that are likely driving the Indian stock market:
1. Hopes of an end to the US-Iran war
The US and Israel launched a combined attack on Iran on February 28. The conflict is into its second week, but markets seem to have started discounting the possibility of the war ending soon.
US President Donald Trump on Monday said the U.S.-Iran war may end soon as Tehran’s air force and navy had been seriously damaged.
According to news agency Reuters, Trump predicted that the “conflict may end well before the initial four-week time frame laid out by him earlier.”
2. Crude oil prices ease
Crude oil prices saw a sharp decline after Trump signalled that the end of the US-Iran war could not be borne. Trump also said he was considering removing sanctions related to oil and sending the US Navy to escort oil tankers through the Strait of Hormuz to help keep oil prices under control.
Meanwhile, according to reports, the G7 group of countries on Monday said the group is ready to take “necessary measures”, such as stockpile release, to support global energy supply.
Brent Crude traded nearly 6% lower at $99 per barrel mark around 9:15 am IST on Tuesday.
A decline in crude oil prices came as a major relief for Indian stock market investors, as the spike in crude prices seriously impacted the domestic macro conditions.
(This is a developing story. Please check back for fresh updates.)
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