Sensex jumps 1.2k pts as efforts to end war gain pace

NEW DELHI: With hopes of a resolution to the West Asia conflict rising, sensex rallied over 1,200 points in late session on Wednesday to close above the 75,000 mark again.

As diplomatic initiatives to end the war between the US-Israel and Iran picked up pace, markets around the world rallied, crude oil prices slipped, and precious metals gained. The global bullish sentiment also led to a slowdown in foreign fund selling in domestic equities, which, combined with strong domestic buying lifted sensex by 1,205 points (1.6%) to 75,273 points. On the NSE, Nifty gained 394 points (1.7%) to close at 23,306 points.

The day's rally added Rs 8.2 lakh crore to investors' wealth with BSE's market capitalisation now at Rs 431 lakh crore, official data showed.

According to Vinod Nair, Head of Research, Geojit Investments, markets continued to build on the previous day's momentum as global risk sentiment improved, with hopes of peace emerging on the radar. "Potential diplomatic progress between the US and Iran-despite mixed geopolitical commentary-led to easing crude oil prices below $100/barrel, which was welcomed by the market. Early signs of normalisation in maritime movement through the Strait of Hormuz are likely to further support investor confidence, although it may be early to comment."

On Wednesday, despite a muted close to the US markets the previous night, global markets rallied. Across Asia, Nikkei in Japan closed nearly 3% up while Hang Seng in Hong Kong was up 1.1% and Shanghai 1.3%. In Europe, in late trades FTSE in the UK was up 1.5% while Dax in Germany was up 1.6%. In early trades in US, Dow Jones and S& indices were up nearly 1% each while Nasdaq Composite was up 1.3%. And in Brazil, iBovespa was up 2% in opening trades.

The sensex rally came despite a Rs 1,805-crore net selling by foreign funds, the lowest single-session figure since the war started. During the day, domestic investors were net buyers at Rs 5,430 crore, BSE data showed.



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