It's a better day today for domestic equities as compared to yesterday's crash, after geopolitical tensions have slightly bettered, resulting in a cooling of commodity prices and crude as well.
Nifty and Sensex are both in the green, and rising on positive sentiment on June 9. Nifty rose as much as 0.59% while Sensex rose 0.70% in early trade. As of 9:50 am, Nifty is up 0.33% at 23,200, while Sensex is up 0.3% at 73,751.
This comes after both benchmarks ended 1% lower on Monday on the back of gaining crude prices, and volatile IT stocks.
Most sectors are in the green, with gains led by Realty which is up over 1.5%, followed by Defence and Bank. IT is down by 0.7%.
The broader indices are also trading positively, with Nifty Smallcap 250 higher by 1.02%, while the Midcap 150 rose 1.07%.
Here are three reasons the markets are gaining today:
Iran-Israel Truce
US President Donald Trump issued a blunt warning to Israeli Prime Minister Benjamin Netanyahu during a tense phone call Sunday, telling him to exercise restraint or risk losing Washington's backing. The exchange came as fresh escalations of strikes between Israel and Iran pushed the region to the edge of a new escalation.
The warning came approximately 100 days into the ongoing conflict, as Trump continues to pursue a diplomatic deal with Tehran while simultaneously trying to prevent military hostilities from spiralling further.
Israeli Prime Minister Benjamin Netanyahu issued a defiant statement, declaring that Israel was holding its fire following a fresh round of exchanges with Iran but warning that any resumption of attacks would be met with overwhelming force.
Crude Cools Off
Oil prices steadied on Tuesday after Israel and Iran agreed to halt attacks against each other, reducing fears of a broader escalation that could have further disrupted global energy supplies.
Brent crude traded near $94 a barrel after ending the previous session marginally higher, while US benchmark West Texas Intermediate hovered above $91 a barrel.
The rupee appreciated at the open against the US dollar. The local currency gained as much as 29 paise, or 0.31%, to 95.41.
Gold, Silver Prices Dip
The yellow metal dipped on MCX today, June 9 as hopes of an end to the Middle East conflict rose after Israel and Iran agreed to halt attacks on each other. At 9:03 am on Tuesday, the MCX gold July futures contract fell 0.06% to Rs 1,52, 811 per 10 grams, while the MCX silver July futures dropped 0.8% to Rs 2,44,417 per kg.
On Monday, the MCX gold July futures closed flat Rs 1,52,910 per 10 grams, while the MCX silver July futures ended 0.05% lower to Rs 2,46,500 per kg. In the global market, gold remained steady after both Israel and Iran agreed to end attacks that had impacts talks to end the war in the Middle East. The precious metal was around $4,320 an ounce on Tuesday.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
