Benchmark stock market indices opened with a sharp rally on Wednesday over hopes of de-escalation in the ongoing West Asia war.
The S&P BSE Sensex rallied 1,868.41 points to 73,815.96, while the NSE Nifty50 jumped 576.45 points to 22,907.85 as of 9:26 am.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that there are indications of de-escalation of the war from the statements issued by the Iranian authorities.
“Iranian president’s ‘openness to ending the war’ and confirmation from the Iranian foreign minister that ‘messages were exchanged with the U.S.’ indicate that the war might end soon. This view is reflected in declines in crude prices and US bond yields. The market might start discounting de-escalation earlier than the event,” he added.
In the March series, the Bank Nifty suffered the worst cut with crash of around 17 %. This segment holds the promise of sharp recovery when the market bounces back. Leading private sector bank has been beaten down on non-fundamental issues. For long-term investors, this presents a buying opportunity.
Many stocks across sectors were marked sharply down on March 30th due to selling triggered by tax harvesting. These stocks are due for a rebound today.”