Sensex, Nifty Today: Domestic equities rebounded on March 25, extending gains for the second consecutive day as concerns over West Asia conflict eased after US President Donald Trump said that progress is being made towards ending the war.
All the major sectoral indices traded in green, led by consumer durables and realty. Nifty Bank, which tracks the performance of 14 most valuable and actively traded banking stocks, surged around 2.50 per cent to trade above 53,900 level. The broader Nifty Midcap 100 and Nifty Smallcap 100 gained 2.31 per cent and 2.84 per cent, respectively.
Around 11:30 AM, among the Nifty 50 constituents, Shriram Finance was up 5.50 per cent, Adani Enterprises was up 4.63 per cent, and Titan was up 4.20 per cent, emerging as the top gainers of the day. Mahindra & Mahindra, Bajaj Finance, Trent, Grasim, UltraTech Cement, IndiGo, Larsen & Toubro, Jio Financial Services, HDFC Bank, and Bajaj Finserv were trading higher between 3 per cent and 4 per cent.
Barring Tech Mahindra, which was down more than a per cent, the remaining 49 constituents were in the green.
Easing Tensions in West Asia
US President Donald Trump on March 14 said the US is making progress in trying to put an end to the ongoing conflict in Iran. He claimed that the US has secured what he described as a “key concession” from Tehran, though he did not shared the specifics.
A report by The New York Times said the US has sent Iran a detailed 15-point plan, laying out the pathway to end the tensions in the region.
Speaking to reporters at the White House, Trump said US officials are in touch with “the right people” in Iran. He added that Iran seems eager to reach a deal.
However, Iran has strongly denied these claims. Mohammad Baqer Qalibaf, the country’s parliament speaker, dismissed reports of any direct engagement with Washington, calling them “fake news.”
Crude Oil Prices Ease
Another major factor for the rise in equities is fall in crude oil prices, Following Trump's announcement, crude prices eased below the $100 mark.
In early trade, the Brent crude oil futures declined as much as 6.76 per cent to $93.45 per barrel, while the West Texas Intermediate (WTI) crude oil futures tanked up to 6 per cent to $86.77 a barrel.
Positive Global Cues
Further, sentiment of investors in the domestic market also improved due to positive global cues. Global equity market indices were trading higher in early trade, as of 11:30 AM.
Japan's Nikkei 225 was up 2.85 per cent, South Korea's Kospi was up 1.60 per cent, while China's CSI 300 traded higher by 1.20 per cent, and Hong Kong's Hang Seng was up around 0.40 per cent.
Meanwhile, Wall Street futures were also indicating a positive start for US markets.
