Indian stock markets saw significant gains on Thursday as tensions between the United States and Iran eased, boosting investor confidence. The Nifty closed 1.17% higher at 24,765.90, while the Sensex rose by 1.14% to reach 80,015.90. Market analysts caution that the current uptrend may be temporary if the Nifty remains below the 25,200 level.
Market sentiment improved following reports indicating Iran’s willingness to consider abandoning its nuclear program if the US offers a satisfactory alternative. This development raised hopes of reduced tensions in the region, leading to increased global risk appetite. Adani Ports and Special Economic Zone, Hindalco Industries, and Larsen & Toubro were among the top gainers in the Nifty, witnessing strong buying activity.
Broader markets also performed well, with the Nifty Midcap 100 rising by 1.52% and the Nifty Smallcap 100 by 1.58%. The rally was led by metal stocks, as the Nifty Metal Index surged by 2.3%. Sectors like oil and gas, as well as construction-related stocks, also attracted significant buying interest during the day. Experts noted that the positive momentum in the market reflects improving investor sentiment amid hopes of easing geopolitical tensions.
India VIX, a measure of market volatility, decreased by nearly 16% to fall below the 18 mark, indicating a decrease in market uncertainty. Further reduction in volatility is expected to sustain bullish sentiment, according to market experts.
