Indian Stock Markets Rally in Early Trade Following Oil Price Relief and Trump’s Ceasefire Announcement
Synopsis
Key Takeaways
Mumbai, April 17 (NationPress) The domestic equity markets started the day on a mixed note on Friday, but subsequently saw gains, influenced by a drop in global oil prices and the announcement of a ceasefire between Israel and Lebanon by US President Donald Trump.
The Sensex initiated at 77,976, down by 12 points or 0.02%, while the Nifty commenced the session with a rise of 30 points or 0.13%, reaching 24,165.
The indices continued to trade in positive territory, with the 30-share index increasing by 142 points or 0.18% to hit 78,130, and the 50-share index adding 28 points or 0.11% to reach 24,224, driven by purchases in the FMCG, energy, and realty sectors.
Among the early session laggards were HDFC Life, Wipro, Hindalco Industries, Bharti Airtel, and JSW Steel.
In broader market trends, micro-cap and small-cap stocks led the upward movement, with the Nifty Microcap 250 rising by approximately 1% and the Nifty Smallcap 250 also gaining around 1%.
President Trump’s announcement of a ceasefire between Israel and Lebanon could potentially alleviate geopolitical tensions, as he previously suggested that the conflict was approaching resolution.
Analysts recommend a cautious and selective approach to investing due to ongoing global uncertainties and heightened market volatility.
"It would be prudent to postpone any new long positions until the Nifty convincingly surpasses and maintains the 24,500 threshold, which would signify enhanced market sentiment and the possibility of a more sustained bullish trend," the analysts stated.
On the oil front, Brent crude futures fell by up to 1.4% to $97.99 per barrel, while US WTI crude was trading at $92.91, down about 2%.
In the global equity landscape, Wall Street closed positively, with the S&P 500 finishing 0.26% higher and the Nasdaq up by 0.36%.
Conversely, Asian markets displayed declines, with the Nikkei down 1%, KOSPI lower by around 1%, and the Hang Seng decreasing by more than 1%.
On Thursday, foreign institutional investors (FIIs) continued to be net buyers in India for the second consecutive session, acquiring equities worth Rs 382 crore, while domestic institutional investors (DIIs) took profits, selling equities exceeding Rs 3,400 crore.