Stock Market Today: Nifty50 and BSE Sensex rallied sharply in trading on Friday on hopes that the US and Iran can reach a peace deal. The Sensex soared over 1,500 points, while the Nifty50 regained the 23,500 mark. The strong rally boosted the cumulative market capitalization of BSE-listed companies by over 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 biggest gainers, rising up to 3%. Broader markets also participated in the bullish move, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining close to 2% each.
Why is the stock market up today?
Growing optimism about a possible US-Iran dealInvestor confidence received a boost after US President Donald Trump indicated on Thursday that Washington and Tehran could finalize a peace deal as soon 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 to take additional military action against Iran, citing progress in diplomatic efforts aimed at ending the conflict. Crude oil falls below $90Oil prices experienced a sharp decline, falling below $90 per barrel as optimism grew about a possible breakthrough in negotiations between Iran and the United States. Expectations that a peace deal could soon be reached have raised the likelihood that the Strait of Hormuz will reopen, easing concerns about global energy supplies.Brent crude oil futures fell about 4% to trade below $87 a barrel, while WTI crude oil futures fell more than 4% to around $83 a barrel. The drop comes after oil prices surpassed $120 a barrel earlier this year following the closure of the strait, a development that had disrupted financial markets around the world.Global actions join the demonstrationIndian markets reflected the strength seen in global equities as investors responded positively to falling crude oil prices and growing confidence that tensions in West Asia could ease.Japan’s Nikkei index rose almost 3%, while South Korea’s Kospi rose more than 8%. Hong Kong’s Hang Seng and China’s Shanghai Composite rose about 2% each, while Taiwan’s benchmark index gained about 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 in global markets.According to Jateen Trivedi, vice president and commodity and currency research analyst at LKP Securities, oil price movements will continue to be the main factor influencing the national currency. He added that foreign capital flows and broader global sentiment will also remain important factors. Trivedi expects the rupee to trade in the range of 95.25-95.95 in the near term.(Disclaimer: Any recommendations and views on the stock market, other asset classes or personal finance management tips provided by experts are their own. These views do not represent the views of The Times of India.)