Indian benchmark equity indices bounced back on Tuesday, ending a two-day decline, as investor confidence rose following US President Donald Trump’s suggestion that the conflict with Iran might conclude soon. This statement alleviated global market worries and spurred buying across various sectors. The Nifty closed 0.97% higher at 24,261.6, while the Sensex gained 0.82% to settle at 78,205.98.
Experts analyzing the technical outlook noted that immediate resistance near 24,300 could lead to a further recovery towards 24,600, a crucial short-term resistance level. Conversely, the 24,000 mark remains a significant support zone for the index, as highlighted by an analyst’s assessment. Trump’s remarks hinting at a potential resolution of the Iran conflict “very soon” come amidst mounting political and economic pressures on him due to recent turbulence in global energy markets.
During the trading session, broader markets outperformed the benchmark indices, with the Nifty Midcap 100 rising by 1.62% and the Nifty Smallcap 100 climbing by 2.12%. Notably, the Nifty Auto index emerged as the top performer, while the Nifty Consumer Durables and Nifty Financial Services Ex-Bank indices also recorded substantial gains. However, the Nifty IT index faced significant losses, and the Nifty Oil & Gas index lagged behind the overall market performance.
The market’s recovery was largely driven by a positive response to reduced geopolitical tensions that had recently caused market volatility and fluctuations in energy prices. Market experts anticipate that investors will closely monitor developments related to the Iran conflict and global economic indicators for future market trends. The positive market sentiment following Trump’s indication of a potential early end to the Iran war led to a sharp decline in global crude oil prices, stabilizing risk sentiment, as explained by analysts.
