Equity benchmarks opened on a strong note on Tuesday, buoyed by easing geopolitical tensions in West Asia and positive cues from global markets. The rally followed an announcement by U.S. President Donald Trump declaring a ceasefire between Iran and Israel.
The BSE Sensex rose 756.5 points, or 0.92%, to 82,653.33 in early trade, while the NSE Nifty climbed 229 points, or 0.92%, to 25,200.90. Broad-based buying was seen across sectors, with auto, IT, PSU banks and financial services stocks leading the gains.
Analysts noted that the de-escalation in West Asia is likely to reduce volatility in crude oil and equity markets. “The sharp reactions in the crude oil and stock markets suggest the geopolitical situation is limping back to normalcy,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The Nifty Bank index gained 557.25 points, or 0.99%, to trade at 56,616.60. The Nifty Midcap 100 rose 411 points, or 0.71%, to 58,617.80, while the Nifty Smallcap 100 was up 123.05 points, or 0.67%, at 18,443.95.
Aakash Shah, Technical Research Analyst at Choice Broking, said the recovery in the Nifty and Bank Nifty indicates buying interest at lower levels, but added that a breakout above 25,200 and 56,300 respectively would be needed for a sustained rally. “Given the current environment of heightened volatility, investors should remain cautiously optimistic,” he said.
In the Sensex pack, Adani Ports, M&M, UltraTech Cement, L&T, Titan, SBI, Asian Paints, Bajaj Finance and Bajaj Finserv were among the top gainers. NTPC, BEL and Trent were trading in the red.
On the institutional front, foreign institutional investors (FIIs) were net sellers on June 23, offloading equities worth ₹1,874.38 crore. In contrast, domestic institutional investors (DIIs) bought stocks worth ₹5,591.77 crore.
Asian markets mirrored the optimism, with indices in Bangkok, Tokyo, Shanghai, Seoul, Hong Kong and Jakarta trading in positive territory.
Overnight in the U.S., the Dow Jones closed at 42,581.78, up 374.96 points (0.89%). The S&P 500 gained 0.96% to end at 6,025.17, while the Nasdaq advanced 0.94% to 19,630.97.
-IANS
