Nifty Reclaims 25,000, Sensex Jumps Over 800 Points — Read Key Factors Behind Market Rally
The Nifty 50 reclaimed the 25,000 level for the first time since June 11, when the index recorded six straight sessions of gains.
The NSE Nifty 50 has reclaimed 25,000 level and the BSE Sensex jumped over 800 points so far this Friday, as heavyweights HDFC Bank Ltd., and Reliance Industries Ltd. shares advanced. Both the indices have snapped a three-day losing streak.
Intraday, Nifty 50 rose 1% to 25,040.45, and Sensex rose 1.01% to 82,186.37. The Nifty 50 reclaimed the 25,000 level for the first time since June 11, when the index recorded six straight sessions of gains.
The NSE Nifty India Volatility Index declined 5.91% to 13.41, which implied risk-off sentiment reduced among investors. As of 11:07 a.m., the index was trading 4.23% lower at 13.66.
There is a temporary relief from the tension of US getting involved in the Israel and Iran conflict, which is one of the key reasons behind the benchmark large-cap gauges' rally on Friday. The US is taking two weeks to decide whether to strike Iran.
White House Spokeswoman Karoline Leavitt said that US President Donald Trump will decide about getting involved directly in Israel and Iran after two weeks. There is likely going to be negotiation with Iran, which may or may not take place as suggested by substantial evidence, Leavitt conveyed as reported by Bloomberg.
There was looming uncertainty over US' stance because of the indecisiveness and contrary stances from Trump. He asked Iran to surrender unconditionally, before giving a call for evacuation from Tehran. He also had back-to-back meetings with his security officials in recent days after cutting short his G-7 visit.
Oil Prices Starts To Consolidate
Oil prices slumped nearly 3% in Asia. The price of the benchmark August contract of Brent crude declined 2.70% to $76.72 a barrel on Intercontinental Exchange. The prices struggled to recover from session's low. It was trading 2.44% down at $76.94 a barrel as of 11:14 a.m.
Crude oil prices have been a source of great worry to market participants as a potential escalation of war like situation in the Middle-east will likely weigh on the supply from the region.
Dollar Index And Gold Prices Decline
Gold prices were trading lower on Friday following US' decision to take time before taking any significant step in the Israel and Iran situation. It declined 0.77% to $3,344 an ounce. It was trading 0.63% down at $3,349.59 an ounce as of 11:19 a.m.
The dollar index, which measures the strength of the US currency against six major currencies, also gave up gains. It declined 0.37% to 98.54 in Friday's session. It was down 0.27% at 98.63 as of 11:20 a.m.
Decline in safe-haven assets raises charm of risky assets like emerging markets' equities.
