Stock Market Today: Nifty50 and BSE Sensex rose strongly during trading on Friday on the hope of a peace agreement between America and Iran. Sensex climbed over 1,500 points, while Nifty 50 reclaimed 23,500 points. The sharp rally pushed the cumulative market capitalization of BSE-listed firms to over Rs 7 lakh crore, taking the total valuation to around Rs 460 lakh crore.Buying was visible across the board, with all 30 Sensex stocks trading higher. Tata Steel, IndiGo, L&T, Eternal, SBI and Tech Mahindra were the top gainers, rising up to 3%. Broader markets also participated in the rally, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising about 2% each.
Why did the stock market rise today?
Optimism rising over potential US-Iran dealInvestor sentiment got a boost after US President Donald Trump indicated on Thursday that Washington and Tehran could finalize a peace deal later this week, a development that could pave the way for the reopening of the Strait of Hormuz to global shipping.In another development, Trump withdrew plans for additional military action against Iran, citing progress in diplomatic efforts aimed at ending the conflict. Crude oil has slipped below $90Oil prices fell sharply to below $90 a barrel as optimism grew over a possible breakthrough in talks between Iran and the United States. Hopes that a peace deal could be reached soon have raised the possibility of the Strait of Hormuz reopening, which would ease concerns over global energy supplies.Brent crude futures are down nearly 4% to trade below $87 a barrel, while WTI crude futures are down more than 4% at around $83 a barrel. The decline comes as oil prices soared above $120 a barrel following the closure of the Strait earlier this year, a development that destabilized financial markets around the world.global equities join the rallyIndian markets reflected the strength seen in global equities as investors reacted positively to falling crude oil prices and rising confidence in easing tensions in West Asia.Japan’s Nikkei index climbed nearly 3%, while South Korea’s Kospi rose more than 8%. Hong Kong’s Hang Seng and China’s Shanghai Composite rose about 2%, while Taiwan’s benchmark index rose about 2.5%.rupee strengthenedThe Indian rupee rose 60 paise to 95.25 against the US dollar in early trade, supported by falling crude oil prices and improvement in risk appetite in global markets.According to Jatin Trivedi, vice president and research analyst for commodities and currencies at LKP Securities, fluctuations in oil prices will continue to be the primary factor influencing the domestic currency. He said foreign capital inflows and broader global sentiment will also remain important drivers. Trivedi expects the rupee to trade in the range of 95.25-95.95 in the near term.(Disclaimer: The recommendations and views given by experts on the stock market, other asset classes or personal finance management tips are their own. These opinions do not represent the views of The Times of India.)