New Delhi:- The two-week ceasefire between the US and Iran is having a direct impact on the stock market. In the afternoon trade today, Wednesday, local stock markets witnessed a rally, with the BSE Sensex rising by 2,989 points and the NSE Nifty by 890 points. After the US and Iran announced a two-week ceasefire, the domestic market got a boost from the rally in global markets and the easing in crude oil prices.
Currently, the 30-share BSE Sensex has closed at 77,562.90, up 2946.32 points or 3.95%. 27 stocks of the Sensex are seen trading with gains and only 3 stocks are seen trading with losses.
On the other hand, the 50-share NSE Nifty also closed at 23,997.35, up 873.70 points, or 3.78%.
Among the Sensex companies, Interglobe Aviation was the top gainer, up nearly 10 percent. Larsen & Toubro, Bajaj Finance, Maruti, UltraTech Cement, and Mahindra & Mahindra were also major gainers. Meanwhile, Tech Mahindra, Sun Pharma and Power Grid declined.
Global oil benchmark Brent crude fell 13.70 percent to US$94.44 per barrel.
Hariprasad K, founder and research analyst at Livelong Wealth, said, "The main reason for the market rally is the announcement of a two-week pause in US military operations and Iran's agreement to facilitate safe passage through the Strait of Hormuz. This has immediately reduced concerns related to disruption in energy supplies..." He said that the decline in global tensions has led to a sharp decline in crude oil prices. This is very positive for India from both inflation and monetary perspectives.