Stock market today: Sensex and Nifty, the Indian benchmarkets, rallied in trade on Thursday after two consecutive sessions of crash due to the Middle East crisis. While Nifty50 went above 24,750, BSE Sensex closed above 80,000. Nifty50 ended the day at 24,765.90, up 285 points or 1.17%. BSE Sensex closed at 80,015.90, up 900 points or 1.14%.The stock market staged a strong recovery as investor sentiment improved following reports that Iran’s Deputy Foreign Minister indicated the country was willing to give up its nuclear programme, among other developments that lifted market confidence.Among individual stocks, Larsen & Toubro, Adani Ports, Reliance Industries and NTPC led the gains, each rising around 4–5%. On the other hand, Tech Mahindra, HCL Technologies, Hindustan Unilever and ICICI Bank were among the notable laggards. Market participants also attributed the rebound to bargain hunting and technical factors.
Why did stock market rally today? Top reasons
Report on Iran’s nuclear programme boosts sentimentInvestor sentiment improved after a report suggested that Iran may be willing to step away from its nuclear programme under certain conditions. According to Sky News Arabia, Iran’s Deputy Foreign Minister indicated that Tehran could abandon its nuclear ambitions if the United States puts forward an acceptable proposal. Iran’s state-run IRNA later clarified that the minister’s remarks were related to earlier discussions with Washington. The report also noted that Iran had sought meaningful concessions from the US and was prepared to eliminate its uranium stockpiles in return.Strength in global marketsHopes that tensions in the oil-rich region may ease also supported international markets, which had previously faced heavy selling pressure. South Korea’s Kospi index, which had plunged about 12% earlier in the previous session, rebounded sharply and was trading around 9% higher in the morning.Japan’s Nikkei advanced nearly 2%, while Hong Kong’s Hang Seng and China’s Shanghai Composite each gained close to 1% as of 9:10 am IST.US markets also closed higher in the previous session. The technology-focused Nasdaq rose by more than 1%, while the S&P 500 recorded gains of nearly 1%.Reassurances on oil supplyDespite oil prices climbing following the closure of the Strait of Hormuz, measures aimed at ensuring smoother tanker movement appear to have reassured investors. US President Donald Trump stated that he had directed the US International Development Finance Corporation (DFC) to extend political risk insurance and financial guarantees for maritime trade in the Gulf region at what he described as a very “reasonable price.”He also indicated that the US Navy could escort oil tankers through the Strait of Hormuz if required. His comments came after tanker traffic through the key waterway nearly halted following bomb attacks on several vessels passing through the area. The Strait of Hormuz, which links the Persian Gulf to the Gulf of Oman and the Arabian Sea, handles more than 20% of global oil shipments.Rupee strengthensThe Indian rupee also opened stronger against the US dollar, gaining 0.63% to trade at 91.57. This followed the currency’s fall to 92.16 in the previous session, when it dropped below its earlier record low of 91.9875 per dollar reached in late January.Rally in Reliance Industries sharesShares of Reliance Industries, a major index heavyweight, climbed more than 3%, providing strong support to the benchmark indices. Brokerage Jefferies noted in a report that the company could benefit marginally from higher crude oil prices, provided the government does not introduce a windfall tax.“Blockade of the Strait of Hormuz impacts 2–3 mbpd of refined products (2–3% of global demand), and damage to the Ras Tanura refinery in Saudi Arabia could disrupt supplies, leading to higher refinery margins. Every US$1/bbl increase in refinery margin benefits Reliance’s EBITDA by US$500 million annualised (2% of consolidated EBITDA for FY27). So, Reliance could see a small benefit, subject to the government not reimposing a windfall tax on diesel/petrol,” Jefferies said.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)