Indian equity markets saw an uptick on Tuesday following a preliminary agreement between the United States and Iran to resolve conflict. The Sensex climbed over 300 points, reaching an intraday high of 76,579, while the Nifty also rose by around 90 points, trading at 23,941. Sectors such as realty, IT, consumer durables, and financial stocks experienced buying interest, with Nifty Realty up by 0.86% and Nifty IT by 0.74%.
Metal stocks, however, faced selling pressure, leading Nifty Metal to decline by over 1%. Among the top losers in the Nifty pack were Hindalco Industries, JSW Steel, Axis Bank, HDFC Life, Tata Motors Passenger Vehicles (TMPV), and Tata Steel. Analysts noted that the drop in Brent crude prices below $84 per barrel and the stability of the rupee could bolster market resilience.
Despite positive developments, concerns linger over a weak monsoon season that could potentially trigger inflationary pressures. Analysts emphasized the need for close monitoring of monsoon-related developments in the upcoming weeks. In related news, US officials reported the signing of a memorandum of understanding (MoU) to end the prolonged conflict, with a formal ceremony scheduled for Friday.
Furthermore, expectations of a gradual resumption of shipping traffic through the Strait of Hormuz have eased worries about global energy supply disruptions. In the commodities market, Brent crude traded lower at $82.86 per barrel, while US West Texas Intermediate (WTI) crude slipped to $80.57 per barrel. Asian markets mostly traded higher, with Japan’s Nikkei up by 0.62% and South Korea’s KOSPI surging over 2%. Indonesia’s Jakarta Composite also gained around 4%, but Hong Kong’s Hang Seng declined by over 1%.
Wall Street closed on a positive note, with the S&P 500 rising by 1.65% and the Nasdaq surging nearly 3%.
