IT stocks saw early declines amid broad market rally.

Wave of green on Dalal Street as markets cheer Iran-US ceasefire, Hormuz reopening

Dalal Street surged as ceasefire hopes and falling crude oil prices boosted investor confidence, adding Rs 14 lakh crore in early trade.

by · India Today

In Short

  • Markets rallied after Iran-US 2-week ceasefire announcement
  • Brent crude fell to $95, boosting market bullishness
  • IndiGo led gains with 9.41% rise, followed by L&T and Adani Ports

Benchmark stock market indices rallied on Tuesday, as investor sentiment bolstered after the announcement of a 2-week ceasefire between Iran and the US. Investors added nearly Rs 14 lakh crore on Dalal Street in early trade.

Another big boost was the fall in crude oil prices, which tanked below $100 after having surged past $110 in the last few weeks.

The S&P BSE Sensex was up 2,541.76 points to 77,157.73, while the NSE Nifty50 jumped 746.20 points to 23,869.85 as of 9:25 am.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the 2-week ceasefire between the US and Iran has dramatically altered the near-term market scenario.

"The crash in Brent crude to $95 following the ceasefire will again turn the market bullish. This ceasefire, particularly the agreed reopening of Hormuz Strait, will embolden the bulls to charge again, aided by the fair market valuations," he added.

Markets rallied over 3% in early trade after news of an Iran-US ceasefire boosted sentiment. InterGlobe Aviation Ltd led the Sensex gainers, rising 9.41%. It was followed by Larsen and Toubro Ltd, which gained 7.12%. Adani Ports and Special Economic Zone Ltd moved up 6.85%, while Bajaj Finance Ltd added 6.76%. Bajaj Finserv Ltd also surged, rising 6.32%.

Tech Mahindra Ltd saw the sharpest fall, dropping 1.19%, while Infosys Ltd edged lower by 0.13% in early trade.

"Beaten down financials have the potential to stage a dramatic recovery. Crude-related stocks like refineries, aviation, capital goods companies with exposure to the Gulf region, paints and adhesives will be on strong wicket," he added.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

- Ends