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Sensex Soars Near 79,000 as Oil Cools, Geopolitical Fears Ease

Indian equity benchmarks climbed higher in early trade, with the Sensex nearing the 79,000 mark, driven by optimism over potential US-Iran peace talks and a decline in crude oil prices. Sectoral indices like Realty, Private Bank, and Metal were among the top gainers, though some heavyweight stocks like Infosys and TCS faced selling pressure. The positive domestic sentiment contrasted with foreign institutional investors being net sellers, while domestic institutions provided strong buying support. Analysts caution that heightened volatility and consolidation near resistance levels could lead to profit booking or sideways movement.

Key Points: Sensex Nears 79,000 on Softer Crude, Easing Tensions

  • Sensex hits intra-day high of 78,966
  • Realty and banking sectors lead gains
  • FIIs were net sellers, DIIs net buyers
  • Brent crude futures fall below $95
2 min read

Sensex nears 79,000 on softer crude, easing geopolitical tensions

Indian markets surge as hopes for US-Iran peace talks and falling oil prices boost investor sentiment. Key sectors lead the rally.

"the sharp rise in volatility... suggests that profit booking or sideways movement cannot be ruled out - Analysts"

Mumbai, April 21

The Indian stock markets traded higher in early deals on Tuesday, supported by hopes of a peace deal between the United States and Iran, along with a decline in crude oil prices.

Sensex rose 0.56 per cent, or 445 points, to hit an intra-day high of 78,966, while Nifty climbed 0.48 per cent or 118 points to 24,483, amid buying in realty, banking, metal, consumer durables and chemical stocks.

Sectorally, Nifty Realty, Nifty Private Bank, Nifty Metal, Nifty Consumer Durables, Nifty PSU Bank, Nifty Chemicals and Nifty FMCG rose 1.88 per cent, 1 per cent, 0.93 per cent, 0.73 per cent, 0.65 per cent, 0.62 per cent and 0.60 per cent, respectively.

Meanwhile, SBI Life, HDFC Life, Infosys, Dr Reddy's Laboratories, BEL, Tech Mahindra, Max Healthcare, TCS, Cipla and Eicher Motors were among the top losers in early trade.

Broader markets also saw buying interest, with small-cap and mid-cap indices emerging as top gainers.

The positive momentum followed reports that Iran is considering attending peace talks with the US in Pakistan, amid efforts by Islamabad to end a US blockade of Iranian ports.

On Monday, foreign institutional investors (FIIs) were net sellers, offloading equities worth Rs 1,059.93 crore, while domestic institutional investors (DIIs) were net buyers, with inflows of Rs 2,966.89 crore.

Analysts said the market setup points to a mildly positive to range-bound session.

"However, the sharp rise in volatility, coupled with FII selling and ongoing consolidation near resistance levels, suggests that profit booking or sideways movement cannot be ruled out," they added.

On the commodities front, Brent crude futures fell 0.93 per cent to $94.59 per barrel, while US West Texas Intermediate (WTI) declined 2.19 per cent to $85.5.

In global markets, Wall Street ended marginally lower, with major indices easing after logging their third consecutive weekly gains, as renewed US-Iran tensions cast doubt on the durability of a two-week ceasefire.

The S&P 500 fell 16.92 points, or 0.24 per cent, to 7,109.14, while the Nasdaq declined 64.09 points, or 0.26 per cent, to 24,404.39.

Asian markets were mixed. The Nikkei, Hang Seng and KOSPI traded up to 2 per cent higher, while the Jakarta Composite and Shanghai Composite fell up to 1 per cent.

- IANS

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Reader Comments

S
Sarah B
While the headline numbers look good, the article rightly points out the volatility and FII selling. It feels a bit top-heavy. Small investors should be cautious and not get carried away by these intra-day highs. SIP is still the best way.
V
Vikram M
Realty and banking leading the charge! This is excellent news for the broader economic sentiment. If geopolitical tensions ease further, we might just kiss 80,000 on Sensex soon. Fingers crossed! 🤞
P
Priya S
Good to see mid and small caps gaining. Often the rally is only in large caps. But the fact that Infosys, TCS are among losers shows the sectoral rotation is active. Investors need to have a balanced portfolio.
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Rohit P
The market is dancing on global news. One headline from Iran or the US and we swing. While the rise is welcome, our fundamentals need to be stronger to reduce this dependency. Still, a green day is a good day!
K
Kavya N
As someone who just started investing, these numbers are exciting but also confusing. Articles should explain what 'profit booking' means for a newbie. The learning curve is steep!

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