Indian equities saw a positive trend on Tuesday morning, with the Sensex climbing over 500 points to reach an intraday high of 74,035.41, and the Nifty also gaining more than 100 points to touch 23,259.45. Nifty MidSmall Financial Services emerged as the top gainer among sectors, followed by Nifty Realty and Nifty Auto, all showing significant increases. Banking stocks also traded higher, with both PSU Bank and Private Bank indices gaining up to 0.8 per cent.
Market experts noted that the decline in Brent crude prices below $94 per barrel has had a positive impact on Indian equities. However, concerns remain about the sustainability of the peace between Iran and Israel. The recent decision by a US federal judge to strike down President Donald Trump’s H-1B visa fee hike has been viewed as mildly positive for Indian IT stocks.
Despite the positive market movements, analysts pointed out that the bulls are struggling to make a strong comeback, while bearish sentiment persists. Foreign Institutional Investors (FIIs) continue to engage in sustained selling, affecting large-cap valuations. Traders are advised to remain cautious due to elevated volatility and ongoing global uncertainties in the near term.
Iran and Israel have reportedly halted military strikes against each other following a plea by US President Donald Trump for de-escalation. However, Tehran has warned of resuming attacks if Israel continues targeting Hezbollah positions in Lebanon. Crude oil prices have dipped, with Brent crude falling to around $93 per barrel and US West Texas Intermediate (WTI) crude dropping to $90 per barrel.
Asian markets showed positive momentum, with Japan’s Nikkei and South Korea’s KOSPI registering gains. In the US, Wall Street closed on a positive note, with the S&P 500 and Nasdaq finishing higher.
