Indian benchmark indices, the Sensex and Nifty, climbed sharply in early trading on Thursday. The major rally was fuelled by renewed optimism surrounding the potential progress in restarting negotiations between the US and Iran. This easing of immediate geopolitical concerns has significantly boosted overall risk appetite in the market.
The positive sentiment was further bolstered by a constructive trend in global markets and fresh foreign fund inflows into Indian equities.
Indian Indices Rally Amid Easing Geopolitical Tensions
In early trading, the 30-share BSE Sensex posted a significant jump of 619 points, reaching 78,730.32. Similarly, the 50-share NSE Nifty climbed 169.65 points, settling at 24,400.95.The momentum builds on the preceding session, where the Sensex had jumped 1,263.67 points, or 1.64 per cent, to close at 78,111.24. On Wednesday, the Nifty also gained 388.65 points or 1.63 per cent, ending at 24,231.30.
Among the 30-Sensex firms, the major winners driving the gains were Eternal, Infosys, Tech Mahindra, Bajaj Finance, Tata Steel, and InterGlobe Aviation. Conversely, Sun Pharma and Titan were noted as the laggards during the session.
Foreign Inflows and Crude Stability Fuel Market Optimism
Market buoyancy was supported by key global indicators. The global oil benchmark, Brent crude, traded minimally up by 0.04 per cent at USD 94.97 per barrel. This moderation in crude prices is viewed positively by market observers.Furthermore, foreign institutional investors (FIIs) contributed to the upward trajectory. Exchange data showed that FIIs bought equities worth Rs 666.15 crore on Wednesday.
Ponmudi R, CEO of Enrich Money, attributed the positive development to the stability in commodity prices. He noted that the consolidation of Brent crude in the range of USD 94–95 per barrel is a constructive development for the domestic market.
Analysist Viewpoint: Geopolitical De-risking Boosts Investor Sentiment
Experts highlighted the role of shifting international dynamics in driving the current rally. Ponmudi R stated that the renewed optimism surrounding US–Iran negotiations has helped ease immediate geopolitical concerns.He explained that earlier periods saw sustained FII outflows, which were triggered by elevated oil prices and geopolitical uncertainty. However, he observed that recent sessions signal a stabilization, with foreign institutional investors becoming marginal net buyers.
This technical stabilization and geopolitical de-risking have collectively enhanced the overall risk appetite among institutional and retail investors. Meanwhile, Asian markets showed synchronous strength, with South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index all trading higher.
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