Bulls take stage as markets hope it's curtains on war
Why it matters: Global stock markets, including India's Nifty and Sensex, rallied over 1.6% on hopes of a de-escalation in the Iran-US conflict.
- Iranian President Masoud Pezeshkian expressed readiness to end the war with the US and Israel, provided the US guarantees against future attacks.
- US President Donald Trump stated hostilities would conclude in a few weeks, contributing to initial market rallies.
- Brent crude briefly tumbled below $100 a barrel before settling at $102.70, down 1.2% at press time.
- India's NSE Nifty climbed 1.6% (348 points) to 22,679.40, and the BSE Sensex rose 1.7% (1,186.77 points) to 73,134.32, though both pared some of their earlier 2.8% gains.
- US markets rallied 2-4% overnight, and Asian markets saw significant gains, with South Korea surging 8.4%, Japan 5.2%, and Taiwan 4.6%.
- Sunny Agrawal of SBI Securities attributed the market bounce to Iran's peace signal but noted that differing reports later in the day led to the Nifty paring gains.
- Ajit Mishra of Religare Broking cautioned that the market's softening risk, reflected in a 10.3% drop in the Volatility Index (VIX) to 25, is likely a 'breather' and not a 'trend reversal,' advising against anticipating a sustained recovery until the Nifty decisively crosses 23,500.
Global markets surged, with India's Nifty climbing 1.6% and the Sensex up 1.7%, after Iranian President Masoud Pezeshkian signaled a willingness to end the war with the US and Israel, a sentiment echoed by US President Donald Trump. However, optimism remains fragile, as investors, wary of past political misdirection, pared some gains by day's end, with Brent crude settling at $102.70 after briefly dipping below $100.
