Indian stock markets extended their gains on Tuesday, buoyed by hopes of a de-escalation in tensions between Iran and Israel, along with a positive trend in global markets. The benchmark BSE Sensex rose over 300 points in early trade, while the NSE Nifty crossed the 22,400 mark.
Market Performance
The 30-share BSE Sensex climbed 312.45 points to 73,648.21 in early trade. The broader NSE Nifty gained 92.65 points to 22,414.70. Among the Sensex firms, Power Grid, NTPC, Tata Motors, UltraTech Cement, State Bank of India, and Reliance Industries were the major gainers.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were trading in positive territory. Wall Street ended significantly higher on Monday, driven by a rally in technology stocks.
Global Factors
The positive sentiment in global markets came amid hopes that the conflict between Iran and Israel may not escalate further, which could have disrupted oil supplies and hurt risk appetite. International oil prices eased on the prospect of reduced geopolitical risk.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday, offloading shares worth Rs 1,825.96 crore, according to exchange data.
Expert Views
Market analysts said that the easing of tensions in the Middle East and the positive global cues are driving the market. They also noted that the upcoming earnings season and domestic macroeconomic data would guide market direction in the near term.
"The market is taking relief from the fact that the Iran-Israel conflict is not escalating, which is positive for global stability. However, investors should remain cautious and watch for any sudden developments," said a senior analyst.
Outlook
Going forward, the market is expected to remain volatile due to the ongoing geopolitical situation and the start of the earnings season. The Q4 results of major companies, along with global cues, will determine the market trajectory.
The rupee depreciated 8 paise to 83.45 against the US dollar in early trade on Tuesday, tracking the strength of the American currency in the overseas market.
