As investors welcomed signs of a fragile truce in the Middle East, Indian equity markets opened on a positive note on Wednesday, with both Sensex and Nifty showing early gains.
The benchmark Sensex rose by 328.73 points, or 0.40 per cent, to open at 82,383.84, while the Nifty gained 91.50 points, or 0.37 per cent, to touch 25,135.85, reflecting optimism amid easing geopolitical tensions and robust cues from global indices.
The recent announcement of a ceasefire between Israel and Iran, brokered by US President Donald Trump, has helped stabilise investor sentiment across major markets in Asia, Europe, and the United States. Although both countries have accused each other of violations, traders remained hopeful that escalation had been averted.
Ajay Bagga, banking and markets expert, noted that "the tentative Middle East ceasefire is holding up. Markets are ignoring tail risks and bidding up stocks from Asia to Europe to the US." He added that Fed Chair Jerome Powell’s testimony to the US Congress was interpreted as dovish. “Markets saw dovishness in his logical assertion that if labour markets weakened unexpectedly while inflation did not rise, the FOMC cavalry would ride to the rescue.”
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The US markets had rallied sharply on Tuesday, with all three major indices recording gains. Both the Nasdaq and the S&P 500 are now nearing their record highs. The Indian market mirrored this optimism, with the BSE Sensex rising by 158 points in Tuesday's session, and the Nifty 50 closing above the 25,000 mark for the first time in recent days.
In its morning note, SBI Securities stated, “With the S&P 500 hovering near record highs, all key moving averages and momentum indicators are pointing towards continued bullish strength.”
The report added that Nifty’s immediate support lies in the 24,900-24,930 range, and any breach below that could see the index test 24,750.
While analysts remained upbeat, caution was also advised, as volatility stemming from global events could influence market direction. One such key date is July 9, when tariff-related decisions in the United States are expected.
“The Trump Tax bill will be the other focus area for markets. Overall markets are up on the Iran-Israel ceasefire but remain fragile,” Bagga added.
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