Indian equity markets experienced a significant surge driven by optimism surrounding the potential resolution of geopolitical tensions following indications from US President Donald Trump hinting at a de-escalation in the conflict with Iran. The Nifty closed with a 1.63% gain at 24,231.30 points, while the Sensex rose by 1.64% to settle at 78,111.24 points.
Market experts highlighted the critical resistance zone of 24,300-24,400, emphasizing the need for a clear breakout above this range to further propel the rally towards levels between 24,800 and 25,000. They also noted key support levels near 24,000 and a stronger base around 23,900–23,800, expected to serve as a significant demand zone.
The market rally was widespread, with various heavyweight stocks leading the upsurge, including InterGlobe Aviation, Max Healthcare Institute, Power Grid Corporation of India, and Eternal. Notably, mid- and small-cap stocks outperformed the headline indices, with the Nifty MidCap rising by 2.20% and the Nifty SmallCap advancing by 2.35%.
In terms of sectors, construction-related stocks spearheaded the gains, with the Nifty Construction Durable index emerging as the top performer. Additionally, the IT and media sectors witnessed robust buying activity, signaling enhanced investor confidence in growth-oriented segments. However, the Nifty PSU Bank index exhibited relative weakness, trailing the broader market performance.
The market rally was attributed to positive global cues and reduced geopolitical tensions, which reinstated investor faith and drove buying activities across various sectors. Furthermore, the Rupee strengthened marginally, hovering around 93.36, supported by an improved sentiment following the US–Iran talks and a subsequent decline in crude oil prices over the past two sessions. Analysts noted that the decreasing crude oil prices, now approaching the $94–95 range, are alleviating pressure on India’s import bill and offering temporary relief to the currency.
