Sensex, Nifty rise in early trade as easing Iran tensions lift market sentiment

Indian equity markets opened higher on Tuesday, supported by improved global sentiment after indications from the United States that the conflict with Iran could be nearing its end.

In early trading at around 9.29 a.m., the BSE Sensex was up 413 points, or 0.53 per cent, at 77,979. The NSE Nifty also advanced 112 points, or 0.47 per cent, to reach 24,140.

Broader market indices outperformed the benchmarks, with the Nifty Midcap 100 gaining 1.05 per cent and the Nifty Smallcap 100 rising 1.32 per cent.

Most sectoral indices were trading in positive territory, although the Nifty IT and oil and gas indices slipped by 0.54 per cent and 0.47 per cent respectively. Among the strongest performers were auto, pharmaceutical and consumer durable stocks, which rose by 1.47 per cent, 1.28 per cent and 1.95 per cent.

Market participants said the Nifty faces near-term resistance in the 24,200–24,250 range, while strong support is seen between 23,900 and 23,950. For Bank Nifty, resistance is expected between 56,300 and 56,400, with support around the 55,700–55,800 zone.

Investor sentiment improved after US President Donald Trump indicated that the conflict involving the US and Israel with Iran could conclude soon. The remarks led to a drop in crude oil prices and the US dollar, helping revive risk appetite in global markets.

Oil prices reportedly fell by more than 10 per cent before partially recovering after Trump said the United States was considering taking control of the Strait of Hormuz. He also suggested that the war was “complete” and would end “very soon”.

Asian markets also recorded gains, reflecting the positive global mood. China’s Shanghai Composite rose 0.39 per cent and the Shenzhen index climbed 1.57 per cent. Japan’s Nikkei advanced 2.35 per cent, while Hong Kong’s Hang Seng index gained 1.76 per cent. South Korea’s Kospi recorded a strong rise of 4.8 per cent.

US markets had ended the previous session higher, with the Nasdaq rising 1.38 per cent. The S&P 500 gained 0.83 per cent, while the Dow Jones Industrial Average advanced 0.5 per cent.

Analysts said markets could remain volatile in the near term as investors continue to monitor geopolitical developments, movements in crude oil prices and broader global risk sentiment for clearer direction.

On Monday, foreign institutional investors (FIIs) were net sellers of Indian equities worth Rs 6,345 crore. Domestic institutional investors (DIIs), however, offset some of the pressure by purchasing equities worth Rs 9,013 crore.

With IANS inputs