Mumbai: The execution of the peace deal in West Asia, between US and Iran, lifted sensex on Tuesday, its fourth consecutive session of gains. The index closed 544 points up at 76,808 points. Dipping crude oil prices—as there are strong expectations that energy supply chains in the Persian Gulf region will be restored soon—was one of the major factors for the day’s rally, market players said.The day’s proceedings started relatively strong with sensex up about 300 points. Through the session it picked up small gains and closed at a level last seen over a month ago.
According to Vinod Nair of Geojit Investments, domestic equity markets continued the recovery momentum, buoyed by growing optimism around a de-escalation in US–Iran tensions and softening crude oil prices. The Dow Jones Industrial Average rose 361 points (at 11pm on Tuesday) to 52,031, a record high. Meanwhile, investors are cautious ahead of the upcoming US Federal Reserve policy meeting, which will be the first under the newly appointed central bank chief. While Fed is widely anticipated to hold rates, market participants will pay close attention to the forward guidance and commentary on the trajectory of the monetary policy in the world’s largest economy, Nair said.Interestingly, Tuesday’s gains came despite net selling by foreign funds and almost zero net buying by domestic funds. This is raising doubts among market players if the rally could have an extended leg.During the day, crude prices fell sharply with Brent crude trading below the $80/barrel mark for the first time in over three months. In early trades in the US markets, Brent was trading at $78.9, down 5.2% on the day, while WTI crude was trading at $75.2, down 5.4%.
Good response for GIC OFS
Govt’s offer for sale (OFS) for GIC got good investor response on the first day. As a result, govt has decided to offer an additional 3%, taking the total size to 5% of the company, aiming to mobilise about Rs 3,000 crore.
