Indian benchmark equity indices, Sensex and Nifty, staged a significant rebound, closing higher amidst a global market recovery and easing geopolitical tensions between Israel and Iran, offering a much-needed respite to investors.
Key Points
- Indian benchmark equity indices, Sensex and Nifty, closed higher, recovering from sharp losses in the previous session.
- The rebound was primarily driven by a recovery in global markets and a reported pause in hostilities between Israel and Iran.
- A rally in bank stocks and a decline in Brent crude oil prices also contributed to the positive market sentiment.
- Despite the recovery, Foreign Institutional Investors (FIIs) continued to offload equities, selling Rs 5,555.67 crore on Monday.
- Analysts note that while domestic markets are recovering, sentiment remains fragile due to FII outflows and global macro concerns.
Benchmark equity indices Sensex and Nifty ended higher on Tuesday, a day after facing sharp losses, in tandem with a recovery in global markets and easing of hostilities between Israel and Iran.
A rally in bank stocks and cooling oil prices also added to the markets' optimism.
Market Performance Overview
The 30-share BSE Sensex climbed 394.50 points, or 0.54 per cent, to settle at 73,918.76. During the day, it jumped 511.15 points, or 0.69 per cent, to 74,035.41.
The 50-share NSE Nifty ended 119.10 points, or 0.52 per cent, higher at 23,242.10.
Intra-day, the benchmark index climbed 156.4 points, or 0.67 per cent, to 23,279.40.
Among the Sensex firms, InterGlobe Aviation, State Bank of India, ICICI Bank, Axis Bank, Bajaj Finance and Asian Paints were the major winners.
Titan, NTPC, Power Grid and Tech Mahindra were among the laggards.
Global Cues and Expert Insights
Brent crude, the global oil benchmark, declined 1.66 per cent to USD 92.69 per barrel.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 and Shanghai's SSE Composite index ended higher, marking a rebound from the sharp losses in the previous trade, while Hong Kong's Hang Seng index settled lower.
The Kospi surged 8.18 per cent, the Nikkei 225 index climbed 2.17 per cent and the SSE Composite index went up by 1.28 per cent.
"Domestic markets are witnessing a mild recovery after the recent sharp decline, supported by a pause in Iran-Israel tensions and softer crude prices.
"However, sentiment remains fragile, with continued FII outflows and higher bond yields highlighting persistent concerns around evolving global macro dynamics," Vinod Nair, head of research, Geojit Investments Limited, said.
"Indian equity markets ended higher as easing tensions between Israel and Iran helped improve investor sentiment and drive a recovery in risk assets.
"Global markets also traded firmly in positive territory, supported by a combination of easing geopolitical risks, softer oil prices and renewed optimism surrounding the technology and AI sectors," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
FII Activity and Previous Session
Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,555.67 crore on Monday, according to exchange data.
