Taking a breather from recent selling pressure, domestic stock markets opened on a positive note on Tuesday, with both the benchmark indices registering strong gains in early trade. However, market volatility remained high amid ongoing uncertainty related to the Strait of Hormuz.
Nifty 50 opened 365.80 points or 1.62 per cent higher at 22,878.45, while BSE Sensex opened 1,516.08 points or 2.09 per cent higher at 74,212.47.
Market experts said that despite the improvement, uncertainty is affecting investor sentiments.
“Someone is talking nonsense because the world is still not out of the woods, sorry, scratch it, make it up, the world is still not out of the Strait of Hormuz,” Ajay Bagga, a banking and markets expert, told ANI. “There is massive volatility based on social media posts, which are immediately refuted by detractors and then followed by harsh rebuttals, while someone is making huge profits by staying ahead of the market with social media posts and announcements.” Is earning.”
He further said that global signals remain mixed. He said, “Asian markets have lost some of their early gains this morning, oil is up a bit, US dollar is strong, gold and silver are falling like last 25 days, and US equity futures are negative 0.4 per cent. It was wonderful to see GIFT Nifty up over 800 points last night, but now it is up almost 350 points in India as of yesterday afternoon’s market close.”
In a surprise move on Monday, President Trump halted planned military attacks on Iran’s energy grid for five days, claiming progress in secret talks. Iran has publicly dismissed these talks as “fake news” and has said that no direct talks have taken place. Despite the truce, global tensions remain high as the Strait of Hormuz remains a primary flashpoint.
Crude oil prices remain stubbornly high, with Brent crude trading at US$104 per barrel after falling below US$99 per barrel on Monday.
In the commodity segment, gold prices continued their falling trend with 24 carat gold falling ₹₹137370 per 10 grams. Silver prices also fell drastically by more than 3 percent ₹217823 per kg.
Sectoral indices on NSE witnessed broad based buying, with all sectors opening in the green. Nifty Auto rose over 2 per cent, Nifty PSU Bank rose 2.40 per cent, Nifty IT rose 1.46 per cent, Nifty FMCG rose 1.44 per cent, Nifty Metal rose 2.31 per cent, Nifty Pharma rose 1.15 per cent and Nifty Private Bank rose 1.62 per cent.
Positive trend was seen in other Asian markets. Japan’s Nikkei 225 index rose 0.75 percent to 51920, Singapore’s Straits Times rose 0.13 percent to 4849, Hong Kong’s Hang Seng index rose 1.75 percent to 24797, Taiwan’s weighted index remained flat at 32697 and South Korea’s KOSPI index rose more than 2 percent to 5522.
American markets also closed with gains on Monday. The Dow Jones rose 1.38 percent to 46208, the S&P 500 rose 1.15 percent to 6581 and the Nasdaq rose 1.38 percent to 21946.