Stock market today: Nifty50 and BSE Sensex rallied strongly in trade on Friday on hopes that the US and Iran will be able strike a peace deal. The Sensex soared more than 1,500 points, while the Nifty50 reclaimed the 23,500 mark. The sharp rally boosted the cumulative market capitalisation of BSE-listed firms by more than Rs 7 lakh crore, taking the overall valuation to nearly Rs 460 lakh crore.Buying was visible across the board, with all 30 Sensex stocks trading higher. Tata Steel, IndiGo, L&T, Eternal, SBI and Tech Mahindra were among the top gainers, rising as much as 3%. Broader markets also participated in the up move, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining close to 2% each.
Why is stock market rising today?
Growing optimism over a potential US-Iran agreementInvestor sentiment received a boost after US President Donald Trump indicated on Thursday that Washington and Tehran could finalise a peace agreement as early as this weekend, a development that could pave the way for the reopening of the Strait of Hormuz to global shipping.In another development, Trump withdrew plans for additional military action against Iran, citing advances in diplomatic efforts aimed at ending the conflict. Crude oil slips below the $90 markOil prices witnessed a sharp decline, falling below $90 per barrel as optimism grew over a possible breakthrough in negotiations between Iran and the United States. Expectations that a peace agreement could soon be reached have increased the likelihood of the Strait of Hormuz reopening, easing concerns over global energy supplies.Brent crude futures dropped around 4% to trade below $87 a barrel, while WTI crude futures fell more than 4% to about $83 a barrel. The decline comes after oil prices had surged past $120 per barrel earlier this year following the closure of the strait, a development that had unsettled financial markets worldwide.Global equities join the rallyIndian markets mirrored the strength seen across global equities as investors responded positively to the decline in crude oil prices and growing confidence that tensions in West Asia may ease.Japan’s Nikkei index climbed nearly 3%, while South Korea’s Kospi surged more than 8%. Hong Kong’s Hang Seng and China’s Shanghai Composite advanced around 2% each, while Taiwan’s benchmark index gained approximately 2.5%.Rupee strengthensThe Indian rupee appreciated by 60 paise to 95.25 against the US dollar in early trade, supported by easing crude oil prices and improving risk appetite across global markets.According to Jateen Trivedi, Vice President and Research Analyst for Commodities and Currencies at LKP Securities, oil price movements will continue to be the primary factor influencing the domestic currency. He added that foreign capital flows and broader global sentiment will also remain important drivers. Trivedi expects the rupee to trade in the 95.25-95.95 range in the near term.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)
