Markets Surge: Investors Gain Rs 6 Lakh Cr

New Delhi, May 6 (PTI) Investors' wealth surged by Rs 5.99 lakh crore on Wednesday as a sharp decline in crude oil prices after US President Donald Trump claimed progress in negotiations with Iran toward an agreement to end the war brought cheers to the Dalal Street.

Helped by fag-end heavy buying, the 30-share BSE Sensex jumped 940.73 points, or 1.22 per cent, to settle at 77,958.52. During the day, it surged 1,004.99 points, or 1.30 per cent, to the day's high of 78,022.78.

The market capitalisation of BSE-listed companies surged by Rs 5,99,107.83 crore to Rs 4,72,80,559.98 crore (USD 4.97 trillion).

US President Donald Trump has suspended "Project Freedom", to escort ships through the Strait of Hormuz, claiming progress in negotiations with Iran toward an agreement to end the war.

"Indian equity markets closed on a positive note as renewed optimism around a US-Iran peace deal and easing energy prices provided the necessary catalyst," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.


Brent crude, the global oil benchmark, dropped 6.95 per cent to USD 102.2 per barrel.

Supportive domestic developments, including the government's credit guarantee scheme for businesses, boosted banking stocks, Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

The government on Tuesday announced an Emergency Credit Line Guarantee Scheme (ECLGS) with an outlay of Rs 18,100 crore to provide relief for MSMEs and airlines impacted by the West Asia conflict.

From the 30-Sensex firms, InterGlobe Aviation, Trent, Asian Paints, State Bank of India, HDFC Bank and Eternal were among the major winners.

Reliance Industries, Larsen & Toubro, Power Grid and NTPC were among the laggards.

A total of 2,862 stocks advanced, while 1,365 declined and 167 remained unchanged on the BSE.