Why did Sensex and Nifty jump despite the Israel-Iran war? Know the opinion of experts

News Topical, Digital Desk : Despite the rising tensions in West Asia and the Israel-Iran conflict, the stock market performed well on Monday. The Sensex closed at 81,796, up by about 678 points, while the Nifty closed at 24,946 with a gain of 228 points. Let's understand why this happened:

6 reasons that led to the rise

(1) Decrease in oil prices:- Initially, crude oil prices rose due to tension, but there was no major disruption in supply from the Strait of Hormuz. This brought stability in Brent and WTI and gave relief to the market. (2) Recovery in global markets:- Major markets of Korea, Japan, China and Hong Kong witnessed a rise. European markets were in the green and US futures also showed strength. (3) Buying by domestic investors:- Investors bought in energy, capex, oil and defense sectors. Geopolitical tension has relatively less impact on these sectors. (4) Expectations of inflation and rate cut:- America and other central banks have kept interest rates stable, which has increased investor confidence. Inflation figures are balanced, which keeps the possibility of rate cut alive in the future. (5) Corporate results and value buying:- The results of companies have been as per expectations. Investors adopted the approach of value buying during the fall. (6) The market has already priced in the 'worst case':- According to Harshal Dasani of INVasset PMS, the market had already priced in the potential crisis. Now investors are focusing on domestic growth and strong sectors. (7) Indications from history:- According to money manager Ajay Bagga, the market has seen recovery after the Gaza conflict in the past. A similar trend is possible this time too. Overall- the market is currently moving ahead considering the geopolitical tension to be limited. As long as the crisis does not turn into a full-fledged regional war, investors will continue to invest funds in emerging markets like India, especially when growth is strong and interest rates are stable.
 

Read More: The company will raise Rs 4,500 crore through QIP, here is the complete information so far