Published on : Nov 26, 2013
Due to the Iranian nuclear deal and other positive global markets, Indian stock market was higher in the early trade today. After a complete three-day selloff, the buying activity and the higher rupee trend supported the on-going sentiment.
Today, Sensex touched a day’s high of 20,543 and increased as much as 326 points. The Nifty had reached 6,095.60 at its intraday peak. Other reasons for the boost of the rupee were due to the higher equities that raised the rupee to nearly 62.45 per dollar vs the earlier close of 62.87.
Brent Crude threw over a $2 barrel which was followed by a breakthrough nuclear deal between the Iran and world powers over the weekend. Analyst says, the dropping oil prices could help contain inflation and stream down India’s account deficit too. The country is known to import crude oil to fulfill all its needs.
The Iranian nuclear deal would benefit India in many ways. It could make a positive impact on the Indian rupee, as well as, lower crude prices would control the fiscal and current deficit, said Deven Choksey, MD of KR Choksey Shares. Moreover, he also said that the Nifty has a support at 5950 and it could rise to 6300.
Various state-run oil market companies have gained shares with giant corporations like Indian Oil Corp that is rising at 2 percent, Bharat Petroleum Corp at 2.4 percent, and Hindustan Petroleum Corp at 4.8 percent. Also, the Axis Bank Ltd acquired 2.3 percent because the exchange operator BSE Ltd said on December 23 it will involve the lender in its benchmark BSE Sensex.
Indeed, the Asian markets were on a high today. It broke all the records of the Wall Street, on Friday. It was seen that the Japanese stocks were extremely higher due to the Nikkei. It was nearly up by 1.2 percent.