Sensex Jumps 941 Points as Nifty Closes Above 24,300 on U.S.-Iran Deal Hopes
MUMBAI — Indian stocks rallied sharply Wednesday, with the Sensex and Nifty posting strong gains as investor sentiment improved following a steep drop in crude oil prices and hopes of a possible diplomatic breakthrough between the United States and Iran.
The Nifty rose 298.15 points, or 1.24 percent, to close at 24,330.95. The Sensex surged 940.73 points, or 1.22 percent, to end at 77,958.52.
The rally gained strength in the second half of the trading session after reports suggested progress in U.S.-Iran diplomatic talks. Lower crude oil prices also supported the market, easing concerns over inflation, input costs and pressure on India’s import bill.
Market analysts said the Nifty staged a strong rebound and closed above immediate resistance near 24,300.
“The index has established a strong support zone around 24,000, which aligns with both the 21-DMA and 50-DMA,” an analyst said.
“Additionally, Nifty has broken out of a symmetrical triangle pattern on the daily chart, indicating a positive shift in the short-term structure with potential upside towards 24,500 levels,” the analyst added.
Heavyweight stocks led the advance, with InterGlobe Aviation, Tata Motors Passenger Vehicles and Shriram Finance among the top performers on the Nifty.
Broader markets also closed higher. The Nifty MidCap index advanced 1.76 percent, while the Nifty SmallCap index rose 1.93 percent.
Banking and real estate shares were among the strongest sectoral performers. Indices tracking PSU banks, private banks, broader banking stocks and real estate companies outperformed the wider market as risk appetite improved.
FMCG stocks lagged behind and finished as the weakest segment of the day.
Analysts said easing geopolitical concerns and falling crude prices gave domestic equities a strong boost, helping the market close near the day’s highs. However, they warned that investors should remain selective because input cost pressures and foreign exchange risks have not fully disappeared.
“With input cost pressures and FX risks still present, a selective investment approach is advisable,” an analyst said. (Source: IANS)
