Mumbai, May 6 (PTI) Benchmark Sensex rallied by 940 points on Wednesday following a sharp decline in crude oil prices after US President Donald Trump claimed progress in negotiations with Iran towards an agreement to end the war.
Helped by fag-end heavy buying, the 30-share BSE Sensex jumped 940.73 points, or 1.22 per cent, to settle at 77,958.52. During the day, it surged 1,004.99 points, or 1.30 per cent, to a day’s high of 78,022.78.
The 50-share NSE Nifty rallied 298.15 points, or 1.24 per cent, to end at 24,330.95.
A positive trend in global markets aided the rally in domestic stocks.
From the 30-Sensex firms, InterGlobe Aviation, Trent, Asian Paints, State Bank of India, HDFC Bank and Eternal were among the major winners.
Reliance Industries, Larsen & Toubro, Power Grid and NTPC were among the laggards.
US President Donald Trump has suspended “Project Freedom,” to escort ships through the Strait of Hormuz, claiming progress in negotiations with Iran towards an agreement to end the war.
In a post on Truth Social on Tuesday, Trump said, “Great progress has been made toward a complete and final agreement with representatives of Iran.
“Based on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against the Country of Iran and, additionally, the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran, we have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,” Trump said.
Project Freedom was launched on Monday to escort ships, stranded due to the closure of the Strait of Hormuz, to safety.
Trump’s statement on Truth Social came hours after US Secretary of State Marco Rubio announced that Operation Epic Fury, launched on February 28, had concluded as its objectives had been achieved.
“Operation Epic Fury is concluded. We achieved the objectives of that operation. We’re not cheering for an additional situation to occur. We would prefer the path of peace. What @POTUS would prefer is a deal… that is, so far, not the route that Iran has chosen,” Rubio told a press conference at the White House on Tuesday.
Brent crude, the global oil benchmark, tumbled 8 per cent to USD 101.1 per barrel.
“The trigger was largely global — renewed optimism around a potential US–Iran peace deal led to a sharp decline in crude oil prices, offering immediate relief to an import-heavy economy like India,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
In Asian markets, South Korea’s benchmark Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended higher. Kospi surged over 6 per cent.
Markets in Europe were trading sharply higher.
US markets ended in positive territory on Tuesday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,621.58 crore on Tuesday, according to exchange data.
On Tuesday, the Sensex dropped 251.61 points or 0.33 per cent to settle at 77,017.79. The Nifty edged lower by 86.50 points or 0.36 per cent to end at 24,032.80.
