Summary of this article
Nifty, Sensex rise around 0.6 per cent each on renewed Iran peace hopes
Brent crude oil prices eased to $108 per barrel from $114 per barrel
Indian stock markets opened with a gap up tracking positive cues across US and Asian markets. A fall in oil prices and the US dollar also aided market sentiments amid hopes of a peace agreement between US and Iran.
The benchmark Nifty 50 and the Sensex were trading nearly 0.6 per cent up each tracking the rise in global stock markets. The Nifty traded 142.8 points up at 24,175.55 while the Sensex traded 452.7 points up at 77,470.48.
US President on April 5 said that “great progress” is being made with Tehran towards a “final agreement”. Trump also said that the US will briefly stop the operation to escort ships across the Strait of Hormuz. The Strait of Hormuz bordering Iran and Oman controls nearly 20 per cent of the global oil supply, and been blocked since the beginning of the Iran war in late February, which has triggered a global energy crisis.
Hopes of a peace agreement between US and Iran somewhat lifted oil supply concerns, leading to a fall in crude oil prices. Brent crude oil futures fell over 1.5 per cent to around $108 per barrel, from a high of $114 per barrel in the previous session. The fall in crude oil prices also led to easing of the US dollar, with the dollar index falling to 98.31 against its peers. The Indian rupee also retreated to 95.06 against the US dollar, after touching a fresh record low of 95.40 in the previous session.
The rise in US markets was also led the rise artificial intelligence-driven stocks. “Recent earnings across technology and broader sectors continued to support the rally in US equities. Market focus this week remains on results from major companies including Disney and Uber, while NVIDIA’s Q1 earnings later this month remain a key event for global markets,” Bajaj Broking said in a note.
In domestic markets too, IT and Telecom stocks led gains. The Nifty Midsmall IT and Telecom index gained the most among sectoral indices, rising nearly 2.4 per cent on May 6. The Nifty IT index also rose 1 per cent in early trade.
(This is a developing story. More updates to follow)
