Sensex rises 550 pts, Nifty above 22,850: Iran, US ceasefire talks amid key factors behind sharp market rebound
The benchmark equity indices Sensex and Nifty rebounded sharply in Monday’s trading session from early losses on reports that Iran and the U.S. have received a plan to end hostilities with an immediate ceasefire.
At around 1:25 pm, the Sensex was up 546.46 points or 0.75 percent at 73,866.01, while the Nifty was at 22,868.80, up 155.70 points or 0.69 perent.
In early trade today, the domestic markets were in deep red, as Sensex plunged 590.89 points or 0.8 percent to 72,728.66, while the Nifty declined to 22,542.95, down 170.15 points or 0.74 percent.
Key factors behind market rebound
1) US-Iran ceasefire hopes: Iran and the United States have received a plan to end hostilities that could come into effect on Monday and reopen the Strait of Hormuz, Reuters reported citing a source. A framework to end hostilities has been put together by Pakistan and exchanged with Iran and the U.S. overnight, the source said, outlining a two-tier approach with an immediate ceasefire followed by a comprehensive agreement.
2) Rupee rises: The rupee gained 33 paise to 92.85 against the US dollar, following RBI’s tightened rules to curb speculative positions, capping banks’ net open positions at USD 100 million. Forex traders said the domestic unit continued to reel under pressure due to unabated withdrawal of foreign capital, a strengthening dollar, and rising crude oil prices amid a volatile geopolitical situation. At the interbank foreign exchange, the local unit opened at 93.13, then gained further ground to touch 92.85 against the greenback, up 33 paise from its previous close.
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