Indian markets rise strongly despite geopolitical concerns

Indian equity markets advanced sharply on Friday, defying rising geopolitical tensions and concerns over potential disruptions to global energy supplies.

The BSE Sensex climbed as much as 630 points, or 0.82 per cent, to reach an intra-day high of 77,261. Meanwhile, the Nifty 50 rose 203 points, or 0.85 per cent, to trade at 23,978 during early deals.

Both indices had opened higher, supported by positive global cues. The Sensex began the session at 77,121, up nearly 0.64 per cent, while the Nifty opened at 23,880, gaining around 0.44 per cent.

Gains were seen across several sectors, with banking, real estate, automobile, energy and metal stocks leading the rally. However, information technology shares lagged behind the broader market.

Among notable decliners were Infosys, Sun Pharma, Tech Mahindra, HCLTech and Hindustan Unilever.

The market’s upward momentum came even as investors monitored tensions in the Middle East, particularly fears surrounding the strategic Strait of Hormuz, a key route for global oil shipments.

Analysts noted that equity markets have remained relatively stable compared with the volatility seen in energy prices. This suggests that investors expect oil prices to ease over the coming months.

While higher crude prices could have a limited impact on inflation and economic growth, market sentiment remains broadly positive, supported by expectations of a strong corporate earnings season.

Asian markets also traded firmly higher, reinforcing investor confidence. Japan’s Nikkei surged by more than one per cent, while Hong Kong’s Hang Seng and South Korea’s KOSPI posted solid gains.

Overnight, US markets ended in positive territory. The S&P 500 rose 0.62 per cent, while the Nasdaq Composite advanced 0.82 per cent.

Crude oil prices continued to climb amid geopolitical uncertainty. Brent crude rose to around $97 per barrel, while US West Texas Intermediate (WTI) approached $99 per barrel.

Despite these pressures, Indian equities appeared resilient, with investors focusing on improving fundamentals and earnings visibility in the months ahead.

With IANS inputs