The stock market in India bounced back on 9 January after a kind of assurance from US President Donald Trump that war with Iran can be averted. On Thursday, the Bombay Stock Exchange (BSE) 30-share index Sensex gained 398.93 points to open at 41,216.67. At the same time, the 50-share Nifty index of the National Stock Exchange (NSE) climbed 127.8 to open at 12,153.15.
The markets would normally respond positively to Iran’s stability as India’s economic interests are influenced to some extent by the condition the Shi’ah country is in due to the commerce between the two countries as well as India viewing Iran as a balancing factor in the Gulf region and against Pakistan. Iran’s devastation in a war is not in Indian interest, as it would affect our oil imports, making the country dependent on other, limited options. Further, the trade to West Asia via Chabahar port, as planned, would end in a scenario of war.
At 9:28 AM, 28 stocks of the Sensex saw an increase while only 2 stocks declined. At the same time, 48 out of 50 stocks of Nifty had gained while only 2 stocks had a sell-off.
As of 9:32 PM, the Sensex stocks were buying, SBI shares 2.16%, Indusind 1.97%, Bharti Airtel 1.93%, ICIC Bank 1.79%, Tata Steel 1.70%, Larsen & Toubro 1.70 %, Axis Bank’s 1.50%, Reliance’s 1.46%, Mahindra & Mahindra’s 1.41% and Bajaj Finance’s shares rose 1.34%. At the same time, JSW Steel (1.02%), Zee Entertainment (3.64%), Tata Motors (2.08%), IndusInd Bank (2.02%), Tata Steel (1.90%), Indian Oil (1.89%), SBI (1.75%) on Nifty. ), Hindalco (1.74%), Reliance (1.64%) and BPCL (1.54%).
By 9.39 PM, only TCS shares were being sold on the Sensex and its price had fallen by 0.84%. At the same time, TCS was broken by 0.85%, Coal India 0.65%, Wipro 0.20% and Tech Mahindra by 0.01% on Nifty. As of 9.41 am, the Sensex was up 429.15 points (1.05%) to 41,246.89 points while the Nifty was trading 127.45 points (1.06%) at 12152,80 points.
Trump claimed at a press conference on Wednesday that Iran appears to be retreating. He said, “No American soldier was killed in a missile attack on US bases in Iraq, Iran and we are relieved. The early warning system worked well and our troops moved to a safe place.”
Trump offered peace with Iran and said he was looking for other options to respond to Iran’s attack and punish it by imposing economic sanctions. Trump had offered peace to Iran, saying, “America is ready for peace with all those who seek peace.”