Markets Rally Sharply at Midday; Sensex Crosses 79,150 on Broad-Based Buying 

Mumbai, 21 April: Benchmark Indian indices traded with robust gains throughout Tuesday’s mid-session trade, powering further on their positive opening to touch intraday highs of the day.

The 30-share BSE Sensex jumped 633.21 points or 0.81% to 79,153.51 at 11: 51 am on April 21, and Nifty 50 rose 176.30 points or 0.72% to 24,541.15 at 11:48 am. Sensex opened above 78,800, edging higher steadily throughout the morning as positive external cues and emerging hopes for a ceasefire in Iran boosted investors’ risk-taking sentiment.

Gainers

Among the top gainers, Trent was the session’s star, rocketing to a session high of ₹4,406 with its last trading price (LTP) at ₹4,405 — a gain of 3.82% from its previous close of ₹4,242.80, with a session low of ₹4,242.80. ICICI Bank hit a high of ₹1,383, trading at ₹1,380.80 versus a previous close of ₹1,356.20, up 1.81%, with its low at ₹1,360. Bajaj Finance surged to ₹935.45 at its best, with LTP at ₹934.30 against a previous close of ₹917.75, gaining 1.80%, having touched a low of ₹919. Asian Paints climbed to a high of ₹2,582, trading at ₹2,560.20 compared to a previous close of ₹2,516.80, up 1.72%, with its session low at ₹2,513.70. HCL Technologies rounded out the top five, reaching a high of ₹1,452 with LTP at ₹1,451 against a previous close of ₹1,428.30, gaining a solid 1.59%.

Laggards

SBI Life traded lowest during the day at ₹1,891.70. The stock’s LTP is ₹1,899.10 which is 4.21% lower than the previous closing price of ₹1,982.50. SBI Life’s high of the day was ₹1,975.80. Dr Reddy’s Laboratories stock touched a low of ₹1,218.50. Its LTP is ₹1,218.80, down 1.12% from its previous close of ₹1,232.60. Dr Reddy’s Laboratories’ high of the day was ₹1,247.20. Jio Financial Services declined by 0.95% so far today. Its intraday high was ₹237.05 and the LTP is ₹234.90. The stock closed at ₹237.15 in the previous session. The low of the day for Jio Financial Services is ₹234.68.

Middle East Conflict

Iran ceasefire fears hovered over markets at Tuesday noon. Though Iran could send representatives to attend peace talks scheduled with the US in Pakistan, Iranian foreign minister Abbas Araqchi said ceasefire violations by US troops are likely to scuttle talks, while Iran’s chief negotiator Mohammad Baqer Qalibaf accused US President Donald Trump of increasing pressure on Iran by enforcing the blockade. Talks aim to restore a fragile ceasefire to end more than two weeks of mounting tensions between the two countries that broke following the targeted killing of top Iranian general Qasem Soleimani, although the two-week-old ceasefire deal expires later today, with allegations flying thick and fast about who violated the truce first.

Oil Prices

Benchmark Brent crude was last down about 1% to $94.53 per barrel and West Texas Intermediate fell 1.72% to $88.07 as the threat of escalation continued to recede overnight with markets pricing in hopes that the US and Iran may hold peace talks in Pakistan this week that may allow Middle East oil to flow unimpeded again.

Asian Markets

Japanese stocks were closed for a public holiday. Hong Kong’s Hang Seng was up 0.12% while China’s Shanghai Composite slipped 0.33%. India’s Nifty opened positive helped by gains in Asian peers. South Korea’s Kospi advanced 0.28% and Taiwan’s Taiex gained 0.79%. Singapore’s Strait Times rose 0.23%, while Malaysia’s KLCI added 1.12%. Australian markets were closed for a public holiday.

Rupee Vs Dollar

Rupee continued to trade under pressure against US dollar on Tuesday as it fell by 20 paise to 93.33 against the American currency. This could be because RBI partially rolled back the restriction it imposed on April 1 on trades in non-deliverable forwards(NDF), increasing hedging uncertainty in the process and boosting demand for dollars from importers worried about possible upside in INR-Dollar exchange rate — a factor that could keep rupee under pressure going forward, according to market participants.

Looking Up

The Sensex and Nifty have marched decisively higher so far on Tuesday, building on their positive opening to reach intraday highs of the day. Sentiment would remain positive as long as markets believe there is a reasonable chance for peace talks between Iran and US to take place in Pakistan later today, or if crude prices continue to ease and breadth stays positive. But for indices to extend beyond today’s highs, we’ll need a clearer catalyst, whether that be earnings or macro-news.

Sources:

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