Indian equity markets started strong on Tuesday following optimism regarding reduced tensions in West Asia after US President Donald Trump hinted at delaying potential strikes on Iran’s energy facilities. The Sensex climbed 2% to reach an intra-day high of 74,212 points, while the Nifty opened at 22,878, up by 1.62%. Various sectors, including consumer durables, metals, auto, and PSU banks, showed gains of up to 2%.
Investor sentiment improved as Trump mentioned positive discussions with Iran, leading to a postponement of military actions on Iranian power plants for five days. However, Iran’s parliamentary speaker denied engaging in any talks with the US, emphasizing that no negotiations had occurred. Analysts highlighted that while the market rebounded due to reduced geopolitical tensions, sustainability hinges on global developments and oil price trends.
Market experts advised investors to remain cautious despite the relief rally, considering factors like high crude prices and geopolitical uncertainties that could limit market upside. Oil prices remained elevated, with Brent crude at around $104 per barrel and US WTI crude rising by 4.39%. Asian markets also saw positive movements, with Japan’s Nikkei up by 0.69%, Hong Kong’s Hang Seng gaining 1.5%, and South Korea’s KOSPI advancing around 2%.
