Sensex Rises 364 points at Open as Trump Pauses Iran Attack; IT Stocks Lead

Mumbai, May 19: Domestic equity markets opened strong on Tuesday after US President Donald Trump said he called off military strike on Iran yesterday after receiving a message from Tehran that opened the door to negotiations over its nuclear programme. Global oil prices also eased off multi-year highs seen in the last few sessions amid improved risk sentiment. Benchmark indices advanced in early trade with investors rotating back to beaten-down sectors.

The benchmark BSE Sensex jumped 364.02 points or 0.48% to 75,679.06, and the broader NSE Nifty 50 advanced 89.40 points or 0.38% to trade at 23,739.35 as of 9:23 am, taking Monday’s marginal recovery to higher ground.

Gainers & Losers

The top gainers on the Nifty 50 in early trade were Infosys (INFY), up 4.55%, HCL Technologies (HCLTECH), up 3.41%, Tech Mahindra (TECHM), up 3.23%, Tata Consultancy Services (TCS), up 2.97% and Wipro (WIPRO), up 2.29%, after investors dusted off technology stocks amid cooling oil-price worries and weaker dollar outlook that bode well for earnings of exporters like IT companies. The top losers were Hindalco Industries (HINDALCO), down 0.88%, Titan Company (TITAN), down 0.81%, Coal India (COALINDIA), down 0.80%, Shriram Finance (SHRIRAMFIN), down 0.79% and Kotak Mahindra Bank (KOTAKBANK), down 0.75% in early trade.

Broader & Sectoral Markets

The broader market indices opened in green with Nifty Midcap Select up 0.61%, Nifty Midcap 100 adding 0.53% and Nifty Smallcap 100 rising 0.49%, indicating buying was well spread across the markets and not restricted to large-caps alone. But traders were spotted selling Nifty 50 TR 1X Inverse which dipped 0.36%, while the Nifty Transportation & Logistics index also declined by 0.04% in early trade. Sectorally, Nifty IT jumped 3.47%, Nifty Midsmall IT & Telecom soared 2.33% and Nifty Chemicals rose 1.02% to top the gainers list. However, Nifty Metal declined 0.06%, Nifty Private Bank fell 0.07% and Nifty Realty dropped 0.01%.

Middle East Conflict

The positive opening came on the back of a dramatic pivot in U.S. war posture. Trump announced he had instructed the military to stand down from a planned assault on Iran after Tehran transmitted a peace proposal to Washington through Pakistan, with the U.S. president saying there was a “very good chance” of reaching an agreement to prevent Iran from obtaining a nuclear weapon. Gulf leaders from Qatar, Saudi Arabia and the UAE had urged Trump to hold off on the strike, though no details of any framework were disclosed. Analysts, however, cautioned that the situation remained fluid, with Trump warning that a full-scale assault remained on the table if talks failed.

Asian & US Markets

Asian markets on Tuesday presented a mixed picture, with Australia’s S&P ASX All Ordinaries rising 0.82%, Hong Kong’s Hang Seng gaining 0.48%, and Vietnam’s HNX 30 advancing 0.86%, while Japan’s Nikkei 225 fell 0.64%, Indonesia’s Jakarta Composite dropped sharply 1.85%, and Pakistan’s KSE 100 shed 2.29%. On Wall Street, Monday’s session ended unevenly — the Dow Jones Industrial Average rose 159.95 points or 0.32% to 49,686.12, while the Nasdaq Composite slipped 134.41 points or 0.51% to 26,090.73, and the S&P 500 eased 0.07% to 7,403.05.

Oil Prices Dip

Oil prices retreated sharply in early Asian trade following Trump’s announcement. Brent crude for July delivery fell $3.01, or 2.7%, to $109.09 a barrel, while the more active WTI July contract dropped $2.06, or 2%, to $102.32 per barrel, as traders priced in the possibility of reduced supply disruption through the Strait of Hormuz. Analysts cautioned, however, that fundamental risks persisted even as the immediate geopolitical premium eased.

Monday Session

Back home on Monday, Indian benchmark indices had closed nearly flat after a turbulent session. The BSE Sensex ended 77.05 points or 0.10% higher at 75,315.04, while the Nifty 50 gained just 6.45 points or 0.03% to settle at 23,649.95, with late buying in IT shares rescuing the indices from sharp early losses. Broader market breadth remained deeply negative, however, with 2,891 stocks declining against only 1,216 advances on the NSE, even as India VIX surged nearly 4.5%, reflecting elevated trader anxiety heading into Tuesday’s session.

Source: bseindia.com

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

https://www.nseindia.com/market-data/live-market-indices