Markets Rebound: Sensex Jumps Over 550 Points, Nifty Up By 0.7% As Investors Track Crude, US-Iran Tensions
· Free Press Journal
Indian equity markets staged a strong recovery on Thursday after a sharp sell-off in the previous session, with benchmark indices gaining over half a percent despite continued concerns over rising tensions between the US and Iran and elevated crude oil prices.
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At around 10:30 am, the BSE Sensex was trading 535 points higher at 77,039, while the NSE Nifty50 rose 168 points to 24,050, moving back above the crucial 24,000 level.
The rebound came a day after Dalal Street witnessed its steepest decline in three months.
On Wednesday, the Sensex and Nifty dropped more than 2% following renewed military action by the US in Iran and comments from US President Donald Trump that raised concerns over the future of the ceasefire arrangement.
The escalation triggered worries about prolonged instability in the Middle East, pushing crude oil prices higher and leading to broad-based selling across global markets.
However, Thursday’s recovery indicated that investors were reassessing the situation and believed a worst-case scenario had not yet emerged.
Market participants said crude prices around $79 per barrel remain a concern but are still manageable for India’s economy.
Sensex Crashes 1,677 Points, Nifty Slips 517 Points As US-Iran Tensions And 6% Jump In Crude Oil Prices Trigger Market Sell-OffExperts noted that oil prices would become a bigger challenge only if disruptions affect key shipping routes such as the Strait of Hormuz and push crude prices beyond the $100-per-barrel mark. Current futures markets do not indicate such an extreme scenario.
The sharp correction on Wednesday also encouraged investors to accumulate quality large-cap stocks at lower valuations, supporting the market recovery.
Geopolitical developments have disrupted the market’s gradual recovery trend. Concerns over the Iran conflict triggered heavy selling.
However, current crude levels do not pose a major economic threat, experts opine. They are counting on continued foreign investor support for Indian equities.
Foreign Institutional Investors (FIIs) have remained net buyers over the last four trading sessions, purchasing equities worth around Rs 3,954 crore in the cash market.