The Indian stock markets showed positive trends on Tuesday, driven by optimism surrounding a potential peace agreement between the United States and Iran, as well as a decrease in crude oil prices. Sensex surged by 0.56 percent, reaching an intra-day high of 78,966 points, while Nifty also saw a 0.48 percent increase, climbing 118 points to 24,483. Notably, sectors like realty, banking, metal, consumer durables, and chemicals witnessed significant buying activities.
Nifty Realty, Nifty Private Bank, Nifty Metal, Nifty Consumer Durables, Nifty PSU Bank, Nifty Chemicals, and Nifty FMCG all recorded gains of 1.88 percent, 1 percent, 0.93 percent, 0.73 percent, 0.65 percent, 0.62 percent, and 0.60 percent, respectively. In contrast, stocks such as SBI Life, HDFC Life, Infosys, and Dr Reddy’s Laboratories experienced losses in early trading sessions. The broader market also saw increased interest, with small-cap and mid-cap indices leading the gainers.
Reports indicating Iran’s willingness to engage in peace discussions with the US in Pakistan, amidst efforts to resolve the US blockade of Iranian ports, contributed to the positive market sentiment. Foreign institutional investors (FIIs) were net sellers on Monday, divesting equities worth Rs 1,059.93 crore, while domestic institutional investors (DIIs) were net buyers, with inflows amounting to Rs 2,966.89 crore. Analysts suggest a mildly positive to range-bound trading session, although volatility, FII selling, and consolidation near resistance levels may lead to profit booking or sideways movement.
On the commodities front, Brent crude futures dropped by 0.93 percent to $94.59 per barrel, and US West Texas Intermediate (WTI) declined by 2.19 percent to $85.5. In global markets, Wall Street closed slightly lower, with concerns over renewed US-Iran tensions impacting market sentiment. The S&P 500 and Nasdaq experienced marginal declines after recent weekly gains, raising uncertainties about the sustainability of a two-week ceasefire. Asian markets displayed mixed trends, with the Nikkei, Hang Seng, and KOSPI trading up to 2 percent higher, while the Jakarta Composite and Shanghai Composite fell by up to 1 percent.
