Indian Markets Open Firmly Higher; Sensex up 422 pts, Nifty rises 108 pts 

Mumbai, April 21: Bulls took control at the bell on Tuesday, with India’s equity benchmarks rising smartly from the outset as stocks benefitted from cautious optimism over Iran peace talks and widespread domestic buying activity.

At 9: 24 am on Tuesday, the BSE Sensex jumped 422.53 points or 0.54% to 78,942.83 while the Nifty 50 advanced 108.15 points or 0.44% to 24,473.00, continuing from where it left off on Monday afternoon and indicating that investors were keen to extend last week’s recovery higher. Gains were widespread early in Tuesday’s session as banking, metal, energy and infrastructure stocks were among the top performers, pointing to broad participation in today’s advance. Volatility may continue to accompany moves as market players monitor the ceasefire deadline later this week closely — any new headlines regarding Iran will likely send the markets careening in either direction.

Gainers

Axis Bank jumped to ₹1,374 at its intra-day high with its last traded price (LTP) at ₹1,373.20, rising 1.37% from its previous closing price of ₹1,354.70. JSW Steel rose to ₹1,291, its high for the day, and LTP at ₹1,291, increasing 1.29% from its last close of ₹1,274.50. Adani Ports jumped to ₹1,605 at its high with LTP at ₹1,597. The stock is up 1.18% from its previous close of ₹1,578.40. ICICI Bank rose to ₹1,379.80 at its high with LTP at ₹1,372. The counter increased 1.17% from its last close of ₹1,356.20. Shriram Finance reached ₹1,062.70 at its high with its LTP at ₹1,056.15, gaining 1.05% from its previous close of ₹1,045.15.

Laggards

SBI Life declined to ₹1,920.70 at its low with LTP at ₹1,931.60. The stock is down 2.57% from its previous close of ₹1,982.50. Infosys declined to ₹1,299.30 at its low with LTP at ₹1,302. It lost 0.81% from its previous close of ₹1,317. Infosys Infosys BSE 1.32 %. NSE 1.50 % lost 0.31% in the morning session. Tech Mahindra shed 0.44% to ₹716.50, Bharat Electronics Ltd (BEL) slipped 0.41% to ₹652.70 and HDFC Life declined 0.41% to ₹643.20 at their respective last traded prices.

Iran ceasefire

Expectations that Iran may send delegates to Pakistan for peace talks with the United States was a major focus heading into Tuesday’s session. Iran may send representatives to Pakistan for talks with the US as Pakistan attempts to mediate a resolution to the naval blockade of Iranian ports, a longstanding demand by Tehran as precondition for returning to negotiations before a ceasefire expires later this week. Iranian Foreign Minister Abbas Araqchi indicated that Iran wants continued compliance with the ceasefire by the US as well before talks can progress, however, while Iran’s lead negotiator Mohammad Baqer Qalibaf separately said that Iran would not bow down to President Donald Trump’s “blackmail” tactics and negotiate under pressure. Tehran reiterated that it would never give in to US demands while refusing to confirm participation in peace talks ahead of a deadline this week which could see tensions flare if no agreement is reached.

Asian and US Markets

Asian markets traded mixed on Tuesday while Dow futures fell pointing towards a negative open on Wall Street. Japan’s Nikkei 225 jumped 1.28% to 59,578, Malaysia’s KLCI rose 1.12% and Hong Kong’s Hang Seng climbed 0.12%, while Indonesia’s JSX declined 0.52%, Pakistan’s KSE shed 1.0% and the Shanghai composite lost 0.33%. S&P 500 futures dropped 0.8%, Nasdaq 100 futures slipped 0.6% and Dow futures crashed 1%, which could limit India markets’ upside as they move into the latter half of the session.

Oil Prices

Oil prices extended overnight losses after markets reacted positively to news that Iran was considering sending delegates to Pakistan to resume peace talks with the US. Brent crude futures were last down about 1% at $94.53 a barrel, while West Texas Intermediate (WTI) crude futures fell 1.72% to $88.07. A successful US-Iran peace deal in Pakistan may open up the potential for increased Middle Eastern supply disrupted by heightened tensions since last week — developments that would dampen the ongoing oil supply shock first felt across global markets when the Strait of Hormuz was shut down last week.

RBI Partial Rollback of Curbs

The RBI’s partial rollback of its April 1 foreign exchange derivative curbs provided an additional supportive tailwind for the rupee and broader sentiment on Tuesday. The central bank withdrew its ban on non-deliverable forwards and the restriction on rebooking forward contracts — measures originally introduced to arrest the rupee’s slide toward record lows past 95 to the dollar — signalling that it is satisfied conditions have stabilised sufficiently to ease crisis-era controls.

Stocks Closed Virtually Flat on Monday

Indian markets traded flat on Monday as bulls were unable to sustain early gains. The BSE Sensex closed at 78,520.30, up 26.76 points or 0.03%, while the Nifty 50 settled at 24,364.85, nearly unchanged from its previous close.

Sources:

• https://www.nseindia.com/market-data/top-gainers-losers
• https://www.bseindia.com/index.html