Sensex surges 1,372 points, Nifty nears day’s high on easing geopolitical concerns
MUMBAI — Indian equity markets rallied sharply Tuesday, with benchmark indices closing near their session highs, as investor sentiment improved on hopes of easing geopolitical tensions and strong gains in auto and banking stocks.
The Nifty climbed 399.75 points, or 1.78 percent, to settle at 22,912.40, while the Sensex surged 1,372.06 points, or 1.89 percent, to close at 74,068.45.
Market participants pointed to signs of cooling tensions between the United States and Iran as a key driver of the rally, even as developments in the region remained mixed.
From a technical perspective, analysts said the Nifty is showing early indications of a short-term recovery, supported by a gap-up opening and improving sentiment.
“On the downside, 22,700 now acts as an immediate support backed by OI build-up, while the 22,500–22,600 zone continues to be a critical demand area where buying interest is expected to emerge,” an analyst said.
Broader markets echoed the positive trend, with the Nifty MidCap index rising 2.60 percent and the Nifty SmallCap index gaining 2.63 percent.
Sectorally, media stocks led the gains, with the Nifty Media index advancing more than 3 percent. Auto and banking stocks also contributed significantly to the market’s upward momentum.
The pharmaceutical sector, however, lagged behind other indices, posting the smallest gains of the day.
Analysts said the rally reflected improving investor confidence amid reduced risk perception.
“The recovery was largely driven by a moderation in risk perception, as early signs of potential de-escalation in the ongoing U.S.–Iran tensions helped restore some investor confidence,” a market expert said.
Meanwhile, the Indian rupee weakened to around 93.90 against the U.S. dollar, down 0.36 percent, as persistent tensions in West Asia and rising crude oil prices continued to weigh on sentiment and India’s import outlook. (Source: IANS)
