The nifty 50, after hitting a one-month low of 24,473 on June 13, The Day Israel Attacked Iran’s Nuclear Sites, Has Since Added 1,076 Points, Or 4.4%, Reaching 25,549, Reaching 25,549, the Highest Level of 2025555. is now just 2.7% Away from its September peak of 26,277.
Its peer, the sensex, has also gained 3,505 points from the June 13 lows, climbing to a 2025 high of 83,755. The index is now just 2.6% Away from Breaking Its September Peak of 85,978.
What Led to a Strong Recovery in the Indian Stock Market?
Despite a Lack of Progress on the India-us Trade Deal, Escalating Tensions in the Middle East, And Sharp Volatily in Crude Oil Pries, The Bulls Did Not Lose CONFIDENCE In Local Equiteies and Manged to Ovorcom Each obstacle.
The Renewed Interest In Quality Large-Cap Stocks-Aamid Stretched Valuations in the Mid- And Small-Cap segments-Mad provided the fuel for a strong rebound. Despite Valuation Concerns, The Broader Markets have also participated in the latest rally.
Although the Iran – Israel War Had Limited Direct Impact on Indian Markets, as the Country is Not Heavily Dependent Fresh optimism.
The Temporary Halt LED to a Sharp Drop in Crude Oil Pries and Eased Concerns Over Supply Shortages and the Potential Closure of the Strait of Hormuz, A Critical Chokepoint Throughs and 20% of the 20% of the World’s Oil Supply Passes.
Oil has swung in a range of about $ 15 a barrel this week after priced on monday following the us bombing of Iranian Nuclear Sites, Before President Donald Trump Declared Aeasefire Crude prices have dropped 11% this week, and are on track to record their West weekly drop in the last two years.
Meanwhile, the softness in the US dollar has also added another leg to the rally in domestic equities, as a Falling Dollar Typical Leads to Lower Commodity Pries. The sustained drop in the greenback has also also LED to Expectations
On Thursday, The Dollar Index Dropped to a Three-Year Low of 97 Against a Basket of Major Currencies, AS Expectations Grew That The Us Economy Cold see an outcasting in rate cats.
This cameid speculation that president donald trump may announs his pick for the next fed Chair as Early as SEPTEMBER OCTOBER or OCTOBER, Potanally Creating A “Shadow” leaders Policy in a more dovish direction.
On the domestic front, the trade truce between India and the us has been progressing slowly. AMID This, The latest reports sugges that India is expected to push for an extection of the exemption window from trump’s reciprocal tariffs, which are scheduled to take the effer from 9.
New Delhi and Washington Are Still Negotiating a Mini Trade Deal, AS PART of a Scled-Down Bilateral Trade Agreement (BTA), which is likely to be finalized by separated by separation, Acording to Meedia reports.
Will the Rally in the Indian Stock Market Hold Further?
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, Noted That A Key Hallmark of the Ongoing Bull Market, Which Began after the Covid-LED CRASH on MARCH on MARCH on MARCH 7,511), is its ability to “Climb all walls of works.”
He Pointed Out that Despite Headwinds Such as High Inflation, Aggressive Monetary Tightening by Central Banks, Geopolitical Tensions Including Wars and Conflicts, Conflicted Tariflests Threats, The Market Has Continued to Rally. “It appears that rally is unlikely to be impacted by Market, “He Added.
Vijayakumar also highlighted the sustained weakness in the us dollar as a significant development, with the dollar index slipping to around 97. Investor (FII) inflows of 12,594 Crore on Wednsday, A Substantial Figure, even thought it include Bulk Deals.
“This Big Fii Buying has lifted Large Caps LIKE HDFC Bank, ICICI Bank, Bharti, Ril, and Bajaj Finance, Which in Turn, Has Contributed to the Sharp Spike in the sharp spike in the benchmark indices,” He said. While The Market Momentum Remains Strong, He Cautioned that Some Near-Term Profit Booking is likely.
Disclaimer, The views and recommendations giving in this article are that of individual analysts. These do not represent the views of Mint. We Advise Investors to Check With Certified Experts Before Taking Any Investments Decisions.
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