Midday: Sensex Tops 78,000; Gainers Dominate as Market Sentiment Improves 

Mumbai, April 15: Indian equity benchmarks continued their upward journey during mid-session trading hours on Wednesday, hovering near their session highs after strong opening. Investors rushed to buy shares on easing global risk appetite amid falling crude oil prices. BSE Sensex was at 78,081.88, up 1,234.31 points or 1.61 per cent at 12:19 pm. Nifty 50 jumped 376.40 points or 1.58 per cent to 24,219.05.

Investors were seen selling at higher levels in the early hours of trade and buying supported the markets from day’s low. Buying interest was spread across sectors such as IT, metal, auto, capital goods among others.

Indices pared their opening gains following short covering and profit booking by stocks at higher levels. However, markets have recovered most of their losses as buying returned at lower levels.

Middle East Crisis: War

US and Iran were set to resume talks in Pakistan over the next two days despite Tehran’s blockade of its ports, helping reduce concerns of all-out war amid geopolitical tensions in the Middle East. After suffering heavy losses earlier this week on geopolitical tensions with Iran, investors now believe that hostilities may ease given indications that the US and Iran will resume talks in the next couple of days. Iran had blocked its ports after the killing of its military commander Qasem Soleimani last Friday in a US drone strike.

Oil Prices

Oil prices continued to decline for the second straight session after comments about Iran and the US talking increased hopes of an agreement. Brent crude futures traded at $95 a barrel, while US West Texas Intermediate (WTI) crude futures traded around $91 per barrel after hitting an intraday high of above $100 per barrel. Both benchmarks closed higher on Tuesday. Since breaching above $90 earlier this week, crude oil prices have seen some correction.

Weakening oil prices have removed a key factor supporting inflation expectations and input costs, while also improving risk appetite. Lower oil prices have also reduced concerns of tighter financial conditions emerging in the US.

Rupee

Indian rupee was seen consolidating against the US dollar after falling marginally during early deals as crude oil prices slipped further from their multi-year highs and investors continued buying dollars into local banks. Domestic currency is likely to find support from lower crude prices as it lowers the import bill for India. But caution is advised as movements in geo-political tensions and foreign fund flows will also influence the rupee moves.

Stocks Update

InterGlobe Aviation soared by 4.6 per cent at ₹4,659 hit and ₹4,575 low and was trading around ₹4,642 as compared to previous close of ₹4,427. Meanwhile, Eternal Holdings (Zomato) edged up 4 per cent at ₹246.64 hit and ₹240 low as compared to previous close of ₹236.22 and trading around ₹246.30. Max Healthcare rallied by 3.8 per cent at ₹989.20 hit and ₹960 low as compared to previous close of ₹951.70 and trading around ₹986.95. Hindalco Industries traded higher at ₹1,038 hit and ₹1,002 low as compared to previous close of ₹978.25 and trading around ₹1,010.
Larsen & Toubro was up by 3.3 per cent at ₹4,097 hit and ₹4,031 low as compared to previous close of ₹3,954 and trading around ₹4,082.

Sources: bseindia.com

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