Indian Stock Market Opens Higher As Geopolitical Tensions Ease

The Indian stock market opened in the green on Tuesday, boosted by easing geopolitical tensions and positive global cues.

The development follows US President Donald Trump’s announcement of a ceasefire between Iran and Israel, calming investor concerns across the globe.

Indices surge in early trade

By 9:31 AM, the benchmark Sensex climbed 756.5 points, or 0.92%, to reach 82,653.33.

The Nifty rose by 229 points, or 0.92%, to trade at 25,200.90. Gains were visible across sectors, particularly in auto, IT, PSU banks, and financial services.

Analysts see conflict de-escalation driving optimism

Analysts attributed the bullish sentiment to the apparent de-escalation in West Asia.

“The ceasefire announcement indicates the worst phase of the conflict may be over,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

He added, “The sharp movements in crude oil and equity markets suggest the geopolitical situation is gradually normalising.”

Sectoral indices show strong gains

The Nifty Bank index gained 557.25 points (0.99%) to reach 56,616.60.

The Nifty Midcap 100 added 411 points (0.71%) to trade at 58,617.80, while the Nifty Smallcap 100 advanced by 123.05 points (0.67%) to 18,443.95.

Aakash Shah, Technical Research Analyst at Choice Broking, noted, “The recent rebound in both Nifty and Bank Nifty reflects strong buying interest at lower levels.

However, a firm breakout above 25,200 for Nifty and 56,300 for Bank Nifty is necessary for a sustained rally.”

Top gainers and losers on Sensex

Adani Ports, M&M, UltraTech Cement, L&T, Titan, SBI, Asian Paints, Bajaj Finance, and Bajaj Finserv led the gains on the Sensex.

In contrast, NTPC, BEL, and Trent were the top laggards in early trade.

Foreign Institutional Investors (FIIs) remained net sellers on June 23, offloading equities worth ₹1,874.38 crore.

On the other hand, Domestic Institutional Investors (DIIs) showed strong buying interest, with net purchases amounting to ₹5,591.77 crore.

Positive momentum in Asian and US markets

Asian markets, including those in Bangkok, Japan, China, Seoul, Hong Kong, and Jakarta, also traded in positive territory.

On Wall Street, the previous session saw the Dow Jones gain 374.96 points (0.89%) to close at 42,581.78.

The S&P 500 advanced 57.33 points (0.96%) to finish at 6,025.17, while the Nasdaq rose by 183.56 points (0.94%) to 19,630.97.

Outlook: Cautious optimism recommended

Despite the market uptrend, analysts advised investors to remain cautious given the prevailing volatility.

“The environment remains unpredictable, so investors should approach with cautious optimism,” said Amit Shah.

Also Read: Sensex Ends Lower In Volatile Session As Middle East Tensions Flare Up