Sensex, Nifty End Two-Day Losing Streak as Markets Rise on Hopes of Iran War De-escalation
MUMBAI — India’s benchmark stock indices rebounded Tuesday, snapping a two-day losing streak after comments from U.S. President Donald Trump suggesting the conflict with Iran could end soon lifted investor sentiment.
The positive signals helped ease global market concerns and prompted buying across several sectors.
The Nifty 50 index closed up 0.97 percent, gaining 233.5 points to settle at 24,261.6, while the BSE Sensex rose 639.82 points, or 0.82 percent, to finish at 78,205.98.
Market analysts said the Nifty is approaching a key resistance level.
“On the upside, immediate resistance is placed near 24,300, and a decisive breakout above this level could extend the recovery toward 24,600, which remains the next key short-term resistance,” an analyst said.
“On the downside, the 24,000 level continues to act as an important support zone for the index,” the analyst added.
Investor sentiment improved after media reports cited Trump as saying the conflict involving Iran could be resolved “very soon,” as volatility in global energy markets has increased political and economic pressure in recent days.
Broader market indices outperformed the benchmark indices during the session. The Nifty Midcap 100 rose 1.62 percent, while the Nifty Smallcap 100 climbed 2.12 percent.
Among sectoral indices, the Nifty Auto index led gains during the day. The Nifty Consumer Durables and Nifty Financial Services Ex-Bank indices also recorded notable advances.
However, not all sectors participated in the rally. The Nifty IT index was the weakest performer among sectoral indices, while the Nifty Oil & Gas index also lagged the broader market.
Analysts said the rebound in equities reflected improving risk sentiment after signs of potential de-escalation in the Middle East conflict.
“The rebound came after signs of potential de-escalation in the Middle East conflict, as President Donald Trump hinted at a possible early end to the Iran war,” an analyst said.
The easing of geopolitical concerns also contributed to a correction in global crude oil prices, helping stabilize market sentiment, analysts added.
Market participants are expected to closely track developments in the Iran conflict and other global economic signals for further direction in the coming sessions. (Source: IANS)
