NEW DELHI : The Indian Stock Markets reacted sharply to the announcement of the Iran and United States (US) peace talks which is likely to be held on June 19 in Switzerland, leaving optimism for the investors. The global crude oil prices also witnessed sharp relief of up to 5 per cent.
At the time of open, Sensex was up 1,126.36 points or 1.49 percent at 76,654.31, and the Nifty was up 339.25 points or 1.44 percent at 23,962.15.
Further, nearly 557 shares advanced, 65 shares declined, and 40 shares unchanged.
Reacting to the positive news on the US Iran War, US crude oil futures for July delivery were down 4.85% at $80.76 per barrel while Brent futures, the international benchmark, for August delivery traded about 4.35% lower to $83.51.
The Indian rupee opened sharply higher gaining 43 paise to 94.68 against the US dollar compared to Friday’s close of 95.11.
Kaveri More, Commodity Technical Analyst At Choice Broking said, “MCX Crude Oil declined sharply by around 5%, with the broader trend remaining moderately bearish. Prices came under pressure after reports of a US–Iran agreement raised expectations of increased energy exports and improved global oil supply. Key support is seen at Rs7525–Rs7250, while resistance is placed at ₹7920–₹8300. Unless prices reclaim resistance levels, the near-term bias is likely to remain weak.”
Rajesh Palviya, Head of Research, Axis Direct said, “Investor confidence strengthened after reports of a US-Iran peace agreement, while softer crude oil prices and a sharp recovery in the rupee further lifted sentiment. Global markets also remained supportive, with gains across major US indices reflecting renewed optimism, despite some consolidation in technology and AI-related stocks.”
“The positive momentum has further strengthened after the weekend developments, with the US and Iran reaching an agreement to end hostilities and the reopening of the Strait of Hormuz expected to ease supply concerns. Brent crude, already under pressure after last week’s sharp decline, is likely to remain subdued, which is a significant positive for India’s macroeconomic outlook through lower inflationary pressures and a reduced import bill. Firm Asian markets and a positive indication from GIFT Nifty also suggest a strong start for domestic equities.”
