Indian equity markets showed early gains on Thursday as tensions in West Asia seemed to be easing following Iran’s consideration of a proposal to resolve the conflict. The Sensex surged by 0.83% or 627 points to reach an intraday high of 75,945, while the Nifty climbed by 0.84% or 200 points to 23,859.
Realty stocks led the sectoral gains, with the Nifty Realty index increasing by 1.5%. Other sectors like Nifty Cement, chemicals, auto, and media also saw positive movements. Additionally, PSU Bank and metal stocks remained in the green during the session, with all sectoral indices showing positive trends.
In the list of top laggards from the 50-share benchmark pack were companies like Infosys, Nestle India, Trent, SBI Life Insurance, Sun Pharma, Tata Consumer Products, and ONGC. Smallcap and midcap shares outperformed the benchmarks in early trade, with the Nifty Microcap 250 rising over 1% and the Nifty Smallcap 500 and Nifty Midcap 150 indices gaining up to 1%.
India VIX decreased by over 4% to around 18, indicating a reduction in volatility. Analysts noted that investors are following a “buy on dips” strategy, supported by lower volatility and positive sentiment regarding foreign fund flows. They mentioned that concerns over high valuations in AI-linked stocks in South Korean and Taiwanese markets might shift foreign investor focus towards India, where valuations are considered relatively fair in certain areas.
Market experts highlighted that the direction of crude oil prices and rupee stability would be crucial in determining the short-term market trend. They also pointed out that while fourth-quarter earnings have been healthy, the impact of higher energy prices might start showing from the first quarter of FY27. Moreover, market sentiment improved as Iran reviewed Washington’s proposal to end the conflict, raising hopes of reduced geopolitical tensions in West Asia.
In the commodities market, Brent crude rose by 1.32% to $106.41 per barrel, while US WTI crude surged by nearly 2% to $100.11 per barrel. Global market sentiment was positive, with Asian stocks trading higher, including Japan’s Nikkei rising by over 3%, South Korea’s KOSPI surging by more than 7%, and Hong Kong’s Hang Seng showing marginal gains. In the US, Wall Street closed on a positive note, with the S&P 500 up by 1% and the Nasdaq settling 1.54% higher.
