Market Open: Indian Markets Open Strong on Peace Hopes; Sensex up 510 pts 

Mumbai, April 16: Indian equity market opened with optimism as BSE Sensex was trading 509.72 points or 0.65% higher at 78,620.96 while Nifty advanced 144.10 points or 0.59% to 24,375.40 in early trade on Thursday. Market participants were trading on the expectations of Iran deal on Wednesday. Asian stocks followed global markets higher on Thursday on hopes of a diplomatic solution to ease tensions with Iran.

Early Buoyant Stocks

Metal and financial stocks were among the early movers in Thursday’s trade. Eternal climbed over 2% to ₹252 while Hindalco advanced ₹1,027.65 per share. Infosys traded at ₹1,325 after rising 1.47% while HDFC Life jumped to ₹649.60 per share, up 1.40%. Bajaj Finance climbed to ₹926.80 higher by 1.38%. Expectations of Iran deal sent early stocks trading firmly in the green with most investors participating in broad-buying.

Laggards

Coal India traded lower at ₹434.20 falling 0.37%, UltraTech Cement was down 0.36% at ₹11,743.00 while Oil and Natural Gas Corporation fell to ₹286.60 after losing 0.35%. Energy stocks under pressure from falling crude oil prices while rest of the markets started strong.

Asian Stocks Extend Winning Streak

Asian stocks rose on Thursday after US stock markets ended higher, with investors continuing to cheer expectations that tensions with Iran may ease. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%, putting it on track for a third straight day of gains. Japan’s Nikkei advanced 1.5%. S&P 500 e-mini futures were up 0.1%.

Wall Street Wap: Stocks Jump

The S&P 500 index climbed 0.80% to close at another record at 7,022.95 while the tech-rich Nasdaq Composite Index jumped 1.59% to 24,016.02 for its 11th straight gain. Dow Jones Industrial Average slipped 72 points after closing at another record on Wednesday. Despite the dip, the Dow posted a third straight positive close.

Iran War: Hope Builds for Diplomatic Solution

The White House struck a cautiously optimistic note about securing a deal to avoid conflict with Iran on Wednesday while it warned it would ratchet up economic pressure on Tehran if talks fail. It was reported that Iran could allow ships through the Strait of Hormuz to pass freely through the Omani side of the waterway if a deal was reached. Tehran source briefed on matter. Stocks have rallied sharply on signs of an easing in Middle East tensions this week. Investors now look to see if diplomatic channels confirm an agreement that would provide direction for markets.

Benchmark Crude Prices Fall 

Brent crude futures fell 44 cents or 0.5% to $94.49 a barrel while US West Texas Intermediate crude slid 70 cents or 0.8% to $90.59 a barrel in early trade on Thursday. Tehran source said Iran could allow ships pass freely through Strait of Hormuz’s Omani side if deal reached, suggesting supply would not be hit if agreement was reached. The developments come as crude prices fell on Wednesday evening as traders squared positions ahead of the long US holiday weekend.

Rupee Opens Higher at 93.28 against US dollar

Indian rupee opened higher by 9 paise to 93.28 against US dollar on Thursday due to hopes of Iran war ceasefire deal. However, rupee’s gains are capped by dollar demand from importers and corporates with foreign loans. Rupee broadly traded around the 93 mark in past few sessions with low volatility in the range of 30-35 paisa in intra-day trades.

Sources: 

1. www.bse.com
2. https://www.nseindia.com/market-data/top-gainers-losers