Sensex surged in early trade
Sensex surged in early trade

Sensex zooms 634 points, Nifty 190 points; metal, auto, bank stock lead gains

  • The broader Nifty regained 12,200 mark
  • Metal, banking and auto stocks led the gains

Indian stock markets jumped sharply today as crude prices slumped after US-Iran tensions appeared to ebb. Benchmark index Sensex rallied over 634.61 points to 41,452.35 while the broader Nifty ended the day above 12,200 mark. (12,215.90 points, up by 190.55 points or 1.58%) The gains were broad-based, with metal, banking and auto stocks leading the gains. Some softness was seen in IT stocks due to firmness in the rupee. The Nifty auto and banking indices surged over 2% each.

Among the Sensex stocks, ICICI Bank, IndusInd Bank, SBI were up between 3% and 4%. Axis Bank, M&M, Maruti, Bajaj Finance, L&T, Asian Paints rose between 2% and 3%.

The India VIX index, commonly known as fear gauge, fell 10% today. This index had spiked over the past few days as investors worried about an escalation in Iran-US tensions.

Oil prices, which spiked briefly to four-month highs on Wednesday soon after the Iranian attack, dropped sharply on the softer tone from both sides.

Oil marketing companies HPCL, BPCL and Indian Oil rose between 2% and 4%.

Analysts however remained cautious. "It’s not the end of 40-year hostilities between Iran and the US but deescalation of the current crisis," HDFC Securities said in a note.

Asian markets rallied today while safe-haven assets such as gold and the yen retreated after Iran and the US dialled down their hostilities following days of heightened tensions caused by the US assassination of Iran's top general last week. Iran on Wednesday launched missile attacks on US targets in Iraq. Tehran later said it had "concluded" the attacks for now, while Foreign Minister Mohammad Javad Zarif tweeted that the country does "not seek escalation or war".

President Donald Trump said that Tehran appeared to be "standing down" after firing missiles - without causing casualties - at US troops based in Iraq. In a televised address to the nation from the White House, Trump emphasized there were "no Americans harmed" in the ballistic missile salvo aimed at two bases.

(With Agency Inputs)

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