Indian equity benchmarks opened higher on Thursday after two days of uncertainty triggered by the Iran war, which had driven investors toward safe-haven metals such as gold and silver.
This morning, both the Nifty 50 and BSE Sensex staged a strong comeback following sharp declines in the previous two trading sessions. While the Nifty climbed more than 500 points, the Sensex also rose over 500 points in early trade, reflecting renewed investor confidence.
Market experts have noted that the broader outlook remains weak, but suggest the market now appears oversold at current levels.
The recent uncertainty was sparked by Iran’s closure of the Strait of Hormuz to all forms of economic activity, particularly the transit of oil and commodities, which passes through the strait in both directions.
The Indian market, however, has absorbed the shock relatively well, recording a fall of only 1.5 per cent compared with South Korea, where indices plunged more than 12.1 per cent.
US equities also closed higher on Wednesday despite the ongoing conflict with Iran, buoyed by unconfirmed reports suggesting Iran may be considering engagement in talks.
Investor confidence further stabilised after US President Donald Trump pledged to stabilise oil markets, easing fears of a wider escalation in the Middle East conflict.
Asian markets also recovered in tandem with Wall Street gains. Nevertheless, uncertainty surrounding the Iran war continues to weigh on the overall outlook.
Meanwhile, gold prices advanced on Thursday as the expanding Middle East conflict prompted investors to seek refuge in safe-haven assets, further supported by a softened US dollar.
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