Stock Market Sensex Today: Sensex Jumps 830 Points, Nifty Up 230 As Crude Oil Price Falls 5%

Stock Market,Sensex, Share Market, Nifty Updates: US crude fell over 8%, Brent down over 5% amid possibility of a US-Iran peace deal.

Stock Market Updates:

Indian equity benchmarks seen gap-up opening on Monday on the back of rising optimism of a US-Iran deal. At the open, Sensex was up over 800 points while Nifty shot up over 200 points. Brent crude is now trading below $100 a barrel – for the first time this month.

Expert View By Harish Vatnani
Harish Vatnani, Head of Trade, Zebpay

After tumbling nearly 4% late Friday amid heightened geopolitical tensions and heavy liquidations across the crypto market, Bitcoin (BTC) staged a sharp rebound over the weekend after President Trump signaled that a peace agreement involving Iran and several Middle Eastern nations was approaching completion. The easing of tensions lifted global risk sentiment, helping BTC recover above $77K after briefly slipping toward the $74K zone. Traditional markets also reacted positively, with U.S. Equity futures turning green and risk assets seeing renewed buying interest. Meanwhile, oil prices retraced as fears of supply disruption in the Middle East eased, reducing pressure on inflation-sensitive markets and further supporting the recovery across crypto and tech stocks.

At the time of writing, BTC was trading at $77,153.

BTC witnessed a decent rally from $65,000 to $82,850 surging almost by 27%. On a weekly time frame, the asset was trading in an uptrend by forming a ‘Higher High Higher Low’ pattern. However, the bulls failed to manage the grip on the asset as it saw some profit booking at higher levels and the price adjusted to $74,289. The longer shadow around the $74k indicates buying at these levels. BTC has a strong support zone from $75,000 to $73,000. If it bounces and sustains above the support levels then we can expect the bulls to resume the up move whereas if it breaks the support then the price may further drop and test the $65k levels.

Stability in the currency is necessary to bring back FPIs.

Crude has dipped by $5 to below $100 on expectations that US and Iran are close to a deal. The market will wait and watch for clarity and certainty since many similar expectations have been belied since the start of the war. If this expected deal holds and crude drifts down, that can turn out to be turning point for the market.

Another positive trend is the better-than-expected Q4 results. An important trend to note is the impressive growth of most digital platform companies. The market has been rewarding.

The appreciation in the rupee from the recent low of 96.96 is a welcome trend. Stability in the currency is necessary to bring back the FPIs who have been on a sustainable sell mode. The resilience of the market during this period of crisis is a hugely positive factor. This is a reflection of partially the economy’s strength, and partially the confidence of Indian investors,” says VK Vijayakumar, Chief Investment Strategist, Geojit Investments. Limited.

Bond yields to stay high?

Apart from concerns over inflation linked to the ongoing conflict, longer-term borrowing costs in the United States are increasingly being influenced by rising “real yields” — yields adjusted for inflation — suggesting that bond investors are concerned about factors beyond just the impact of the Iran war on prices.
Market participants are also focusing on other risks, including the possibility of already elevated public debt levels rising further, the after-effects of the artificial intelligence investment boom, and growing expectations that central banks such as the US Federal Reserve may opt to raise interest rates rather than cutting them.

Strategists at ING Bank, Goldman Sachs, and Barclays believe that the recent rise in long-term bond yields may not fully reverse even if inflationary pressures caused by higher oil prices begin to ease.

This could result in borrowing costs remaining elevated near multi-year highs even after the conflict subsides, continuing to put pressure on governments and broader economies.

Jonathan Hill, head of US inflation strategy at Barclays told Bloomberg it is difficult to attribute the global selloff in longer-duration bonds purely to inflation concerns, especially considering how medium- and long-term inflation risks are being priced by markets.

According to him, rising debt levels, the possibility of higher neutral interest rates, and the influence of artificial intelligence-related investment trends could instead be contributing to higher real rates.

The neutral interest rate refers to the level at which monetary policy neither stimulates nor slows economic activity. Although rising oil prices have dominated headlines, measures such as breakeven rates — which reflect bond market inflation expectations — have not increased as sharply as overall yields in the US and UK.

Hill also noted that despite the ongoing conflict, 10-year breakeven inflation rates remain around 50 basis points below the levels seen during the first half of 2022, when the US Federal Reserve was aggressively increasing interest rates.

The Indian stock market benchmark indexes, Sensex and Nifty 50, are likely to open higher on Monday, tracking upbeat global market cues on signs of the US-Iran peace deal boosted investor sentiment.

The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 23,961 level, a premium of almost 217 points from the Nifty futures’ previous close.

On Friday, the Indian stock market ended higher, with the benchmark Nifty 50 closing above 23,700 level.

The Sensex gained 231.99 points, or 0.31%, to close at 75,415.35, while the Nifty 50 settled 64.60 points, or 0.27%, higher at 23,719.30.

Sensex Prediction

Sensex formed is witnessing positive consolidation near the 50-day SMA (Simple Moving Average) on daily charts. Last week, Sensex rose 0.24% and formed a bullish candle on weekly charts. Sensex Prediction.
Sensex formed is witnessing positive consolidation near the 50-day SMA (Simple Moving Average) on daily charts. Last week, Sensex rose 0.24% and formed a bullish candle on weekly charts.Sensex Prediction
Sensex is witnessing positive consolidation near the 50-day SMA (Simple Moving Average) on daily charts. Last week, Sensex rose 0.24% and formed a bullish candle on weekly charts.

For more such information, connect with us today: : www.globalmediaa.com