Nifty, Sensex Up Over 1%, All Sectors In Green: Three Reasons Why Markets Are Rising

The market is abuzz today, with benchmark indices extending gains to open higher, with Nifty trading 1.12% higher to 23,420.45 at 9:15 am, while Sensex opened 1.24% higher at 74,748.

Nifty has already reached a high of 1.27%, and Sensex rose 1.39% in teh first five minutes of trading. This surge comes against the backdrop of several positive cues, including a bettering geopolitical situation, cooling crude prices, and positive global cues.

All sectors are trading in the green, with gains led by Realty, which is up 2%. It's followed by Defence, PSU Bank, and Auto.

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The broader indices are trading positively, with Nifty Smallcap 250 higher by 1.58%, while the Midcap 150 rose 1.55%.

Here are three reasons the markets are gaining today:

'Great Settlement' In Iran War 

US President Donald said that a deal to end the war with Iran is nearly complete and is expected to be signed over the weekend in Europe, as he called off military strikes on the gulf nation hours after threatening to take control of its oil industry. Trump, speaking to reporters at the Oval office on Thursday afternoon, said Vice President J D Vance is expected to attend the signing ceremony which could take place in Europe as soon as this weekend.

The US president said he has spoken to leaders of the Middle Eastern countries, including Qatar, UAE, Saudi Arabia, Bahrain, Kuwait and Pakistan, regarding the latest round of negotiations. Later, addressing a tele-rally in favour of Georgia Lt Governor Burt Jones, who is running for the post of Governor, Trump declared that the US has ended the war with Iran.

Earlier, at the Oval Office, Trump said that the stock market "likes the deal" and there would be a signing quickly. He said the Strait of Hormuz would reopen once the agreement is finalised. Trump claimed that Iran has committed to permanently abandoning any effort to obtain a nuclear weapon.

On Thursday morning, Trump threatened to hit Iran "VERY HARD" and take over Kharg Island, Iran's oil export hub. A few hours later, he abruptly cancelled attacks, claiming progress in peace negotiations.

Get all the latest updates on the US-Iran war here.

Crude At $86/Barrel

Oil prices extended their decline on Friday after US President Donald Trump said a peace agreement with Iran could be signed as soon as this weekend, raising hopes that disruptions to Middle Eastern energy supplies may eventually ease.

Brent crude fell nearly 2% at the open to $88.79 a barrel after ending the previous session at a two-month low, and is now trading at $86.70. US benchmark West Texas Intermediate traded near $89 a barrel.

Trump said any deal would include commitments by Iran not to pursue nuclear weapons and would help restart commercial shipping through Hormuz.

The prospect of a reopening has prompted traders to unwind some of the geopolitical risk premium that had pushed oil prices sharply higher earlier in the conflict.

ALSO READ: Brent Crude Slides To $86 As Trump Claims 'Great Settlement' In Iran War

Governemnt Relief On Nuclear Imports

MTAR Technologies, L&T, Walchandnagar Industries as well as Hindustan Construction Company shares are buzzing in trade on Friday, largely on account on government's relief on imports of goods used for nuclear power generation.

MTAR Tech has led the gains in this pack with a surge of almost 10%. This marks a sharp rebound for a stock that had witnessed a steep fall earlier this week on the Crusoe data centre pause. 

Hindustan Construction Company Ltd. gained 5.03% to Rs. 22.77, while Walchandnagar Industries Ltd., which manufactures nuclear reactor equipment, rose 4.30% to Rs. 253.45.

ALSO READ: MTAR Tech, L&T And Walchandnagar Rally On Govt's Relief On Nuclear Imports

Positive Global Cues

Wall Street closed sharply higher on Thursday, supported by a recovery in semiconductor stocks and optimism after President Donald Trump suggested that a peace agreement between the U.S. and Iran could be reached soon. The S&P 500 climbed 1.75%, the Nasdaq Composite surged 2.54%, and the Dow Jones Industrial Average advanced nearly 930 points, or 1.86%.

Asian markets followed the positive momentum on Friday. South Korea's Kospi surged 6.99%, the top gainer in the region. Japan's Nikkei 225 rose 3.36%, while Hong Kong's Hang Seng gained 1.48%. Australia's S&P/ASX 200 advanced 1.78%, and Shanghai Composite rose 0.97%.

Futures linked to the S&P 500 gained around 0.2%, while Nasdaq 100 futures also rose by a similar margin. Dow futures were up about 59 points, or 0.1%.

Get all the latest updates on the stock market here.

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