3 hrs ago
Sensex, Nifty Rebound as Oil Eases and Iran Fears Recuse
Indian share prices rose on Friday after falling sharply the day before.
The Sensex and Nifty are two measures of how many Indian company shares are doing.
Technology shares helped lead the rise after TCS reported higher profits.
Oil prices also fell a little, and comments from US President Donald Trump eased some immediate worries about conflict with Iran.
The rupee strengthened against the US dollar, and some global bond yields edged down.
But not every share rose, and the news said that market worries had not gone away.
High oil prices and investors selling Indian shares could still put pressure on the market.
Some analysts said the recent fall could create buying opportunities for people investing for the longer term.
On Friday, October 9, the Sensex rose as much as 854 points and the Nifty 50 gained up to 284 points.
The rebound followed a Thursday sell-off that erased more than ₹10 lakh crore in investor wealth.
IT shares led gains after TCS reported a 15% year-on-year rise in September-quarter net profit.
Lower crude prices, a stronger rupee and easing global bond yields supported sentiment, while Trump’s remarks reduced immediate fears of escalation with Iran.
Analysts warned that high oil prices, foreign investor selling and geopolitical uncertainty could keep markets volatile, though some saw opportunities for long-term investors.
- Who
- Indian equity benchmarks, including the Sensex and Nifty 50, and investors.
- What
- The benchmarks rebounded, led by IT shares, after a steep sell-off.
- Where
- India’s stock market, including shares listed on the BSE.
- When
- Friday, October 9; the article does not specify a year.
- Why
- Easing crude prices, reduced immediate fears of escalation with Iran, IT-sector strength after TCS results, a stronger rupee and softer bond yields supported sentiment.
Near-term caution
Long-term opportunity
Market outlook
Near-term caution
Geojit Investments’ V K Vijayakumar said high crude prices, elevated US bond yields and FII selling could sustain a near-term “sell on rally” market.
Long-term opportunity
Vijayakumar said the correction could offer patient, longer-term investors opportunities to accumulate high-quality stocks at more attractive valuations.
Geopolitical risks
Near-term caution
Trump said a US naval blockade of Iranian ports would continue, and the article reported that the New York Times said US plans for strikes on Iran had been drawn up; the situation remained uncertain.
Long-term opportunity
Trump’s comments about productive discussions with Tehran and a pause in potential strikes eased immediate fears of energy-supply and shipping disruptions.
Key facts
- Sensex intraday high
- 72,447.61, up as much as 854 points or 1.2%.
- Nifty 50 intraday high
- 22,515.95, up as much as 284 points or 1.3%.
- Previous session
- Thursday’s sell-off erased more than ₹10 lakh crore in investor wealth.
- BSE-listed companies
- Their combined market capitalisation increased by more than ₹3 lakh crore by 10:30 am on Friday.
- TCS September-quarter results
- Net profit rose 15% year on year to ₹13,884 crore; revenue rose 11% to ₹73,188 crore.
- Crude prices
- By 0220 GMT, Brent fell 0.7% to $103.53 a barrel and WTI fell 0.6% to $90.97.
- Rupee
- Gained 23 paise to 96.65 against the US dollar in early trade.
Quotes
V K Vijayakumar
Chief investment strategist at Geojit Investments.
“Stock market history tells us that crises are great opportunities to buy. The ongoing corrective phase of the market has opened up opportunities for patient long-term value investors to accumulate high quality stocks from the market. The risk-reward structure of the market now is highly favourable for medium to long-term investment.”
livemint.com
“These two strong headwinds have turned the near-term Indian market structure to a strong ‘sell on rally’ structure.”
livemint.com
Sources
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