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The Indian market opened on the green mark on Tuesday. The market environment has improved after the statement of US President Donald Trump, in which he indicated that the ongoing conflict between America and Iran may end soon. The 30-share Sensex rose 655.92 points or 0.85% to 78,222.08 in early trade. Meanwhile, the 50-share Nifty rose 189.15 points or 0.79% to 24,217.20. Recovering from all-time low, the rupee rose 7 paise to 92.14 against the US dollar in early trade. This possible recovery could come at a time when the domestic market had recorded a big fall on Monday. Investor sentiment remained weak due to rising geopolitical tensions and sharp rise in crude oil prices.
There was a big fall last day
On Monday, Sensex fell 1,352.74 points or 1.71% to close at 77,566.16, while Nifty fell 422.40 points or 1.73% to close at 24,028.05. Risk aversion in global markets and sharp fluctuations in energy prices increased investor concerns.
Impact of crude oil and Asian market
On Tuesday, a fall in crude oil prices and a rise in global stock markets were seen. After Trump’s statement, the worries of investors reduced a bit, which created an atmosphere of relief in the market. Earlier, huge fluctuations were seen in the oil market. On Monday, the price of crude oil jumped almost 30% to above $ 119 per barrel, but later there was a sharp decline and the price came down to around $ 84. At the start of trading on Tuesday, Brent crude fell by about 10% and fell below $ 90 per barrel.
Condition of Sensex companies
Among the 30 Sensex companies, InterGlobe Aviation, UltraTech Cement, Asian Paints, Adani Ports, Mahindra & Mahindra and Titan were among the major gainers. Reliance Industries, Infosys, Eternal, HCL Tech and Tech Mahindra were among the laggards.
What is the opinion of experts?
Ponmudi R, CEO of online trading and wealth tech firm Enrich Money, said US stock markets closed in positive territory last session, while Asian markets are showing signs of recovery after the fall in oil prices, indicating a slight improvement in global sentiment. Hariprasad K, research analyst and founder of Livelong Wealth, said US stock markets witnessed a strong recovery overnight after the sharp fall in crude oil prices, with the Dow Jones Industrial Average almost rising. Closed up 200 points. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that due to the nervous reaction in crude oil prices yesterday, the price of Brent crude had reached around $ 120, but this morning it reversed and fell to $ 89. This huge swing of almost $30 in a single day reflects the uncertainty surrounding the impact of the West Asian conflict on global crude oil supplies. Uncertainty is at its peak during war and that is what we are seeing right now.
There was a rise in Asian markets
In Asian markets, South Korea’s Kospi index rose again, rising nearly 5 percent, while Japan’s Nikkei 225 index jumped 2.5 percent. Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were also trading in positive territory. Trading ended with a rise in the US market on Monday.
The price of Brent crude fell to $ 93.83 per barrel.
Global oil benchmark Brent crude fell 5.18 percent to US$93.83 per barrel. According to market exchange data, foreign institutional investors (FIIs) sold shares worth Rs 6,345.57 crore on Monday. However, domestic institutional investors (DIIs) bought shares worth Rs 9,013.80 crore.
