Why stock market is rising today: Sensex, Nifty & Trump's latest social media post

Benchmark stock indices Sensex and Nifty climbed nearly 1 per cent each in Tuesday's trade after the US President Donald Trump renewed hopes of peace deal between the US and Iran, ahead of the April 21 deadline. Fear gauge India VIX tanked 5.78 per cent to 17.70.   

Trump in a post overnight said his administration is making a "far better" deal with Iran than the JCPOA, commonly referred to as “The Iran Nuclear Deal,” penned by former US Presidents Barack Obama and Joe Biden.

Brent oil futures for June delivery fell 0.80 per cent to $94.72 a barrel.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments said near-term the market will continue to be news-driven, oscillating between hope and fear. 

Vijayakumar said the mother market US cruising at high levels do not reflect any concern of prolonged war. 

"A prolonged war means slower growth and higher inflation for long. Such a scenario will push the market down. In brief, uncertainty looms large. During such periods of uncertainty, the only thing investors can do is to remain calm and exercise utmost discipline in investing," he said.

The BSE Sensex was trading 692.70 points or 0.88 per cent higher at 79,213. Nifty stood at 24,515.95, up 151.10 points or 0.62 per cent.

"After 24,500 on Nifty and 79,000 on Sensex, the market could move towards 24,600-24,675/79300-79,500. On the other hand, below 24,300/78,300, we may see a sharp intraday correction towards 24,150-24,100/78,000-77,700. The strategy for positional traders should be to buy on dips between 24,150 and 24,000," Shrikant Chouhan, Head Equity Research at Kotak Securities.

"If a deal happens under “TRUMP,” it will guarantee Peace, Security, and Safety, not only for Israel and the Middle East, but for Europe, America, and everywhere else," Trump said. 

Oil prices are up 31 per cent, the rupee has depreciated 2 per cent and foreign outflows from Indian market stood at whopping Rs 1.6 lakh crore since the US-Israel joint strikes on Iran started under "Operation Epic Fury" on February 28.

Yet, investor wealth, as suggested by the BSE market capitalisation, has fully recovered and is at pre-war levels, notwithstanding doubts over the fragile two-week ceasefire between the US and Iran that ends on April 21.