Summary of this article
Stock markets have rattled amid war in Iran
Investors are eyeing developments in peace negotiations, among other indicators to take cues
Indian stock markets were in green on March 24 rebounding from a sharp fall in the previous session after US President Donald Trump claimed he held productive talks with Iran and announced a five-day pause on military strikes against the country. However, investors will look for a more decisive end to the war to take further cues on the market.
The Nifty 50 index opened 1.6 per cent up from previous close and is currently trading at 22,729.95 points, over 1 per cent higher. The index closed around 2.6 per cent lower on March 23. Meanwhile, the Sensex was trading 0.7 per cent higher than previous session at 73,209.28 points at the time of writing.
Amid the ongoing war negotiations, investors are waiting for several global and domestic cues for the market. Here are key factors which could sway investor sentiment in the stock market:
Developments on War Negotiations
While the US said that it held progressive talks with Iran and halted military attacks on the country, Iran denied any such discussions and argued that Trump’s claims were aimed towards manipulating markets. Iran also said that its position on the Strait of Hormuz has not changed. Meanwhile, Israel has also flagged concerns of US conceding ground to Iran in the negotiations.
If the efforts to de-escalate the war do not come through, the positives currently supporting the market will fizzle and markets could turn volatile. Investors await a decisive end to the war to take further bets.
Crude Oil Prices
The Brent crude oil prices continued to hover above $103 per barrel mark on March 24. After Trump announced his decision to stall military attacks on Iran, crude oil prices had fallen below $100 per barrel, but the buying sentiment fizzled after Iran said that positions on Strait of Hormuz, which controls around 20 per cent of the global energy supply, remained unchanged. Investors will keep an eye on any further surges in crude oil prices to take further cues on the impacts across global markets.
