Indian equity benchmarks continued their upward trend for a third day on Tuesday, driven by positive investor sentiment anticipating a possible extension of the US-Iran ceasefire during upcoming discussions. The Nifty and Sensex closed higher, supported by strong buying in key heavyweight stocks and optimism surrounding reduced geopolitical tensions in West Asia.
At the closing bell, the Nifty stood at 24,576.60, up by 0.87%, or 211.75 points, while the Sensex finished 0.96% higher, gaining 753.03 points to reach 79,273.33. Market experts noted that the immediate resistance for Nifty is at 24,600, with potential further upside towards 24,850 and 25,000 if this level is decisively breached.
Analysts highlighted that the 24,350–24,400 range now serves as a crucial support zone after previously acting as a resistance level. Notable gainers on the Nifty included Nestle India, Trent, and Hindustan Unilever, contributing to the benchmark index’s positive performance.
The broader market also displayed positive momentum, with the Nifty MidCap index rising by 0.49% and the Nifty SmallCap index by 0.88%. Notably, the Nifty FMCG and Nifty Realty sectors outperformed other indices due to strong buying interest, while the Nifty Pharma sector underperformed as the worst-performing sector of the day.
Investors maintained a cautious optimism regarding geopolitical developments as talks involving Iranian and US delegations, along with US Vice President JD Vance, are expected to take place to seek a comprehensive agreement to de-escalate tensions in the region. However, uncertainties loom as tensions between the two nations have escalated prior to the meeting.
Iran’s Parliament Speaker Mohammad Bagher Ghalibaf emphasized Tehran’s stance against negotiations under threats, hinting at a strong response if necessary. US President Donald Trump warned of potential military escalation if an agreement is not reached before the ceasefire deadline, raising concerns about the consequences of failed talks.
Analysts foresee a gradual upward movement in Indian equities, supported by improving macroeconomic conditions, declining crude oil prices, and robust Q4 earnings performance.
