Rs 5 lakh crore gains! Sensex soars 787 pts, Nifty reclaims 22,950; Iran-US ceasefire framework, 3 other factors behind the rally
Why it matters: The reported Iran-US ceasefire framework added over Rs 5 lakh crore to the total market capitalization of all companies listed on BSE.
- Sensex closed 787 points higher at 74,107, and Nifty 50 rose 255 points to 22,968, adding over Rs 5 lakh crore to the total market capitalization on BSE.
- Pakistan reportedly brokered a two-tier Iran-US ceasefire framework, with its army chief in contact with US and Iranian officials, aiming for an immediate ceasefire and resumption of trade through the Strait of Hormuz.
- Oil prices for Brent crude and WTI crude futures declined by 1% and 2% respectively, falling below $110 per barrel, providing relief after earlier surges driven by Trump's threats of escalating strikes on Iran.
- Trump had previously threatened massive escalation on Tuesday, including 'Power Plant Day, and Bridge Day,' if Iran didn't open the Strait of Hormuz, which Iran's Parliament Speaker Mohammad-Bagher Ghalibaf warned could drag Washington into a 'living HELL'.
- Zudio-parent Trent shares were the top gainers on Sensex, rallying nearly 8%, while Reliance Industries (RIL) shares crashed more than 3% against the market trend.
Indian markets surged over Rs 5 lakh crore, with Sensex gaining 787 points and Nifty reclaiming 22,950, driven by reports of a Pakistan-brokered Iran-US ceasefire framework that eased oil prices and global tensions. This rally, however, saw Reliance Industries bucking the trend with a 3% decline, while Zudio-parent Trent shares soared nearly 8%.
