India’s stock market rose at the opening bell today, extending its rally to a second straight trading session, as hopes of an early end to the Iran war cooled crude oil prices. Still, the Strait of Hormuz remained a key risk.
The 30-share S&P BSE Sensex rose 0.73%, or 566.32 points, to 78,677.60 points even as the wider NSE Nifty 50 gained 0.64% to 24,385.20 points.
The equity benchmarks rose 1.6% each on Wednesday to hit a one-month high after the US said talks with Iran could resume soon in Pakistan.
“The message from the crude market and the US stock market (Nasdaq, S&P 500 at record high) is that the West Asian conflict is unlikely to last long. The stock market is discounting an early end to the conflict,” V.K. Vijayakumar, chief investment strategist at Geojit Investments Ltd., said over email.
Brent crude slipped below $95 per barrel on Thursday after reports that Iran could consider allowing ships to pass through around the Strait of Hormuz, a waterway that carries 20% of global energy needs on a daily basis. A cheaper crude is a net positive for India, the world’s third-largest oil importer, as it helps ease the import bill, inflation, and pressure on corporate margins. The ongoing Iran war had pushed oil prices to as high as $120 per barrel.
Back home, foreign investors, who have been aggressive sellers of Indian stocks amid the Iran war, bought ₹666 crore worth of shares on Wednesday, as per provisional data. This will be their second session of net buying in India since the conflict began in late February.
Local investors are also monitoring the earnings season, with Wipro Ltd. and HDFC Life Insurance Co. Ltd. scheduled to report their fourth-quarter results Thursday.
Stocks To Watch Today
- HDB Financial Services Ltd. reports a 41.4% rise in fourth-quarter profit, driven by margin expansion, improving asset quality and growth in its consumer finance portfolio.
- ICICI Lombard General Insurance posts a 7% rise in Q4 profit as stronger premiums from its retail health and motor segments cushioned the impact from higher claims payouts.
- Brigade Enterprises Ltd. signs joint development agreement for a residential township project in Bengaluru, with an estimated gross development value of ₹7,200 crore.
