The deal between the US and Iran has been finalized. As a result, the war that has been going on in the Middle East for the last three months will end and the Hormuz Strait will be opened. Due to this, there was excitement in the global markets on Monday. Crude oil prices have fallen by about 5% in the international market. Hopes of peace in the Middle East and the impact of the fall in crude oil prices are positive for the domestic equity market. During Monday’s trade, the Bombay Stock Exchange (BSE) Sensex rose by more than 1200 points and the National Stock Exchange (NSE) Nifty rose by 350 points. At the end of the trade, the Sensex rose by 736.38 points to close at 76,264.33 points. On the other hand, the Nifty closed 231 points higher at 23,853.90 points. The rupee closed at 94.47 against the dollar.
Out of 30 Sensex stocks, 22 closed with gains. Trent’s share price rose by the most, up 5.40%. Apart from this, Indigo, Bajaj Finserv, Eternal, Ultra Cement, Maruti, Mahindra & Mahindra, L&T, Bajaj Finance, Titan, Infosys and HCL Tech also saw significant gains. On the other hand, NTPC, ICICI Bank, Asian Paints and Sunpharma’s share prices fell. According to US President Donald Trump, Iran has agreed to a peace deal. This will end the war in the Middle East that has been going on for more than three months and the Strait of Hormuz will be opened again.
According to the report, both sides have announced an immediate cessation of military operations against each other. The opening of Hormuz will improve the energy crisis. This is very good news for importing countries like India. 20% of the world’s oil is transported to different parts of the world through Hormuz. Its opening will improve the global oil price and importing countries like India will benefit. The recent increase in crude oil prices has caused inflation in various countries of the world. Inflation has also reached extreme levels in America. Oil and gas shortages have been seen in countries from Pakistan, Britain to Bangladesh and India. LPG cylinders have become expensive. Now the opening of Hormuz will normalize the supply of oil and gas. The oil and gas crisis in India will be resolved. Petrol, diesel and LPG will become cheaper. By avoiding war, stock market sentiment will improve and the currency will also strengthen. This peace agreement will bring peace to thousands of Indians working in the Gulf countries.
