Indian stock benchmarks Sensex and Nifty advanced up to 1% on Tuesday, marking their third straight day of gains, driven by stable oil prices, prospects of Iran-US negotiations, and other positive influences favoring investors. The Sensex increased by 666 points, or 0.85%, reaching 79,186.35, while the Nifty 50 climbed over 167 points to 24,532 by midday. These gains boosted the overall market value of BSE-listed firms by more than Rs 3 lakh crore, pushing it close to Rs 469 lakh crore. Over the three sessions, the Sensex has risen about 1,200 points (1.5%), and the Nifty has gained around 1.4%, adding over Rs 8 lakh crore to BSE’s total market capitalization. Among Sensex components, Trent led with a rise exceeding 4%, ahead of its planned bonus share announcement. Bajaj Finance followed with nearly 3% growth, while ICICI Bank, HDFC Bank, and Adani Ports each advanced about 2%. In contrast, Bharat Electronics, Titan, and Reliance Industries dropped up to 1%. The India VIX, an indicator of market fluctuations, fell almost 6% to 17.75. Broader indices also benefited, with the Nifty Smallcap 100 and Nifty Midcap 100 each up 0.7%. By sector, Nifty Realty led with a 3% increase. Looking ahead, market movements will likely depend on news developments, balancing optimism and concern, noted VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He highlighted that news of potential follow-up discussions between the US and Iran sustains hopes for conflict resolution. Brent crude near $95 and falling spot prices suggest confidence in a short-lived dispute, though prolongation could elevate oil costs and pressure equities. A drawn-out conflict might lead to reduced growth and elevated inflation, potentially depressing markets. In uncertain times, he advised investors to stay composed, maintain discipline, and gradually acquire reasonably priced, strong-fundamental stocks for long-term holding. The US-imposed ceasefire deadline for the Iran conflict ends tomorrow, April 22, heightening investor caution, though expectations lean toward a swift resolution. Representatives from both nations may convene this week for another round of talks, following an unsuccessful prior session this month. However, challenges persist; Iran’s Foreign Minister Abbas Araqchi cited ongoing US breaches as obstacles to progress, and Parliament Speaker Mohammad Baqer Qalibaf stressed refusal to negotiate amid threats. US President Donald Trump used Truth Social to denounce past administrations for what he called a flawed agreement with Iran, promising a superior deal under his oversight that would ensure widespread peace and security. Oil markets eased, with Brent crude futures around $95 per barrel and WTI at $88 per barrel, remaining below the $100 threshold last breached during Russia’s 2022 Ukraine invasion. This moderation stems from anticipated Iran-US accord and potential full reopening of the Strait of Hormuz for oil and commerce. Kuwait has invoked force majeure on shipments due to the strait’s closure, per reports. Domestic positivity aligns with a global upswing: Japan’s Nikkei rose about 1%, South Korea’s Kospi surged nearly 3%, Hong Kong’s Hang Seng added over 0.6%, and China’s Shanghai Composite turned positive after early declines. European markets also showed strength.
