Sensex Rebounds 700 Points From Day's Low - Here's Why

Sensex and Nifty 50 recovered substantially from day’s low as buying in energy stocks lent support to the benchmark indices

From their day's low, the BSE Sensex bounced back up to 705 points to 76,576.50, while the NSE Nifty 50 rebounded 217 points to 23,774 level. Since the Iran war started, both the benchmarks have declined nearly 6 per cent from their pre-war levels.

Energy stocks led the recovery, lending support the the benchmark indices. Coal India gained over 5 per cent, NTPC surged nearly 2 per cent, Power Grid Corporation and Reliance Industries were also up 1 per cent.

Accordingly, the Nifty Oil & Gas index was up nearly 1 per cent. Nifty Energy was up by nearly 2 per cent, led by Adani Power, Adani Total Gas, JSW Energy, NLC India, Coal India, BHEL, Torrent Power and Tata Power, each of which gained between 4 per cent and 8 per cent.

Did Iran Allow Indian Tankers To Pass Through Strait Of Hormuz

According to reports, External Affairs Minister S Jaishankar held talks with his Iranian counterpart Abbas Araghchi on March 10, after which Iran allowed India-flagged tankers to pass through Strait of Hormuz, the world’s most important shipping route which carries about one fourth of the total global oil supply through sea. Reportedly, this reduced some of the investor anxiety on oil supply choke concerns.

According to an IANS report, two Indian tankers - 'Pushpak' and 'Parimal' were allowed to pass the troubled sea route, even as tankers from US, Europe, and Israel continued to face restrictions.

However, according to a Reuters report, an Iranian source denied ​allowing ​the ⁠tankers to ​pass through.

The traffic through the strategically important waterway has been disrupted due to the ongoing US-Israel war in Iran, which started on February 28. The disruption led to sharp spikes in crude oil prices. Since the start of the Iran war, oil prices have increased over 40 per cent.

The oil benchmark Brent crude futures has rallied from $72 a barrel to $101 a barrel now. Similarly, the US oil benchmark West Texas Intermediate (WTI) crude futures has increased from $67 per barrel to $96 per barrel.