Markets

Market in recovery mode amid no flare-up in US-Iran tensions

more-in

BSE Sensex was 192.84 points or 0.47% higher at 40,869.47; NSE Nifty closed 59.90 points or 0.50% up at 12,052.95

Indian bourses too staged a recovery after two sessions of sharp losses on January 7, following somewhat calmed global markets as no further escalation in U.S.-Iran tussle soothed investor nerves.

At the closing bell, the BSE benchmark Sensex was 192.84 points or 0.47% higher at 40,869.47. After opening the session on a bullish note, the 30-share gauge went on to touch a high of 41,230.14 in early deals — rallying over 553 points during the session.

Likewise, the broader Nifty closed 59.90 points or 0.50% up at 12,052.95. The 50-share NSE barometer swung over 159 points during the day.

On January 6, the domestic stock market had suffered its worst single-day loss in about six months.

Signs of easing Iran-U.S. tensions helped moderate global crude oil prices, in result prompting the Indian rupee to gain some lost ground.

In the Sensex kitty, Ultratech Cement was the top gainer, rising 2.10%, followed by HDFC Bank, Reliance Industries Sun Pharma, NTPC and Asian Paints.

On the other hand, Infosys, ICICI Bank, Bharti Airtel, Nestle India, Hero MotoCorp and PowerGrid ended in the red.

Sectorally, BSE realty, basic materials, energy, finance and metal indices rose up to 1.83%; while telecom, teck, IT and consumer durables indices slipped up to 0.97%.

In the broader market, BSE midcap and smallcap indices rallied up to 0.99%.

“Iran is under pressure from world leaders not to escalate the issue further. Due to ease in tension in the Middle East, market recovered from yesterday’s losses. Oil prices cooled as Iran a major crude exporter stayed away from retaliation. The first advance estimates for FY20 GDP by MoS is expected at 5% which is already factored by the market, not impacting further,” Vinod Nair, Head of Research, Geojit Financial Services, said.

Brent crude oil futures fell by nearly 0.26% to $68.73.

The Indian rupee appreciated by 11 paise to 71.82 against the U.S. dollar on January 7.

Meanwhile, the Pentagon on January 6 distanced itself from U.S. President Donald Trump’s assertions that he would bomb Iranian cultural sites despite international prohibitions on such attacks.

Iran’s parliament, meanwhile, passed a bill on Tuesday designating all U.S. forces “terrorists” over the killing of a top Iranian military commander in a U.S. strike last week.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended significantly higher. European markets were also trading on a positive note.

Investors, however, turned cautious ahead of the release the first advance estimates of the GDP for FY20 scheduled to be released later in the day.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jan 21, 2020 4:37:05 AM | https://www.thehindu.com/business/markets/market-in-recovery-mode-amid-no-flare-up-in-us-iran-tensions/article30503762.ece

Next Story