How Will The Indian Stock Market React To US-Iran Peace Deal?

US-Iran Peace Deal I Indian Stock Market: The Indian benchmark stock market indices Sensex, and Nifty 50 are expected to witness a gap up opening on Monday, June 15, after the US and Iranian officials agreed on a framework to end the West Asia conflict.

Market expert Ajay Bagga said, "Asia should be among the biggest beneficiaries of the Iran-US deal relief trade, especially energy-importing markets such as Asean countries, Japan, South Korea, Taiwan and India."

"Lower crude prices could ease inflation pressure quickly, helping airlines, consumer shares, tech and lagging cyclicals, while upstream energy stocks may come under pressure," he said.

Also Read: Oil Shock Far From Over? Full Hormuz Recovery Could Take A Year

On the other hand, Crude oil prices declined above 4% after the US and Iran reached a peace agreement to end the war and reopen the vital Strait of Hormuz. Brent crude oil price plummeted 3.95% to $83.88 per barrel, while the US West Texas Intermediate (WTI) crude fell 4.68% to $80.91.

Gift Nifty was trading around 23,982 level, 296 points higher from the Nifty futures’ last close, signalling a gap-up start for the Indian stock market indices.

On the other hand, Crude oil prices declined above 4% after the US and Iran reached a peace agreement to end the war and reopen the Strait of Hormuz. Brent crude oil price plunged 3.95% to $83.88 a barrel, while the US West Texas Intermediate (WTI) crude declined 4.68% to $80.91.

Meanwhile, Asian markets traded higher on Monday. Japan’s Nikkei 225 rose 3.51%, while the Topix rallied  2.43%. South Korea’s Kospi surged 4% and Kosdaq rose 2.34%.

The US Dollar declined to a 10-day low as compared to its top peers. The dollar index declined 0.31% to 99.492, the weakest level since June 5. The euro surged 0.35% to $1.1607, and Sterling rose 0.3% to $1.3448. However, the Japanese yen weakened to 160.150.