Indian markets rally as easing geopolitical tensions boost investor sentiment
MUMBAI — Indian stock markets ended sharply higher Thursday, with benchmark indices recording their strongest session in more than a month as easing geopolitical tensions between the United States and Iran lifted investor confidence.
The Nifty rose 285.40 points, or 1.17 percent, to close at 24,765.90. The Sensex climbed 899.71 points, or 1.14 percent, to end the session at 80,015.90.
Analysts said the rally reflected improving sentiment in global markets but cautioned that the broader trend remains uncertain.
“The market is not completely out of the woods yet, and the current move should be considered only a pullback as long as Nifty trades below the 25,200 level,” an analyst said.
“On the downside, immediate support is placed at 24,600, and a break below this level could drag the index further towards 24,400,” the analyst added.
Investor sentiment improved after reports indicated that Iran may be willing to abandon its nuclear program if the United States presents an acceptable alternative proposal.
The development raised hopes of easing tensions in the region, boosting global risk appetite and supporting equity markets.
Among the top gainers on the Nifty were Adani Ports and Special Economic Zone, Hindalco Industries, and Larsen & Toubro, which saw strong buying interest during the trading session.
Broader markets also outperformed the benchmark indices. The Nifty Midcap 100 rose 1.52 percent, while the Nifty Smallcap 100 advanced 1.58 percent.
Sector-wise, metal stocks led the rally, with the Nifty Metal Index gaining 2.3 percent. Shares in oil and gas companies and construction-related firms also attracted strong investor interest.
Market experts said the positive momentum reflected improving global sentiment as investors reacted to signs that geopolitical tensions could ease.
Meanwhile, India VIX, a measure of market volatility, fell nearly 16 percent to drop below the 18 mark. Analysts said further declines in volatility could support bullish sentiment in the near term. (Source: IANS)
