Indian equity markets traded higher in early trade on Tuesday after US President Donald Trump indicated the possibility of a nuclear deal with Iran, raising hopes of easing tensions in West Asia and improving investor sentiment globally.
The Sensex climbed 368 points, or 0.48 per cent, to touch an intraday high of 75,683, while the Nifty rose 110 points, or 0.45 per cent, to trade at 23,758 during morning trade.
IT stocks led the gains, with the Nifty IT index surging nearly 4 per cent. The Nifty MidSmall IT and Telecom index advanced close to 3 per cent, while the Nifty Chemicals index also traded higher.
On the other hand, private banking, auto and metal stocks witnessed mild selling pressure. Hindalco Industries emerged as the top loser on the Nifty pack, followed by Coal India and ONGC. Shares of Titan Company, Kotak Mahindra Bank and Eternal also traded lower.
Market experts said investors were shifting focus towards relatively attractive sectors in India amid concerns over elevated valuations in global artificial intelligence-linked stocks.
Analysts said large-cap financial stocks, especially leading banks, could outperform if foreign investor buying increases. They also warned that inflation, growth concerns and currency pressure persist amid the energy crisis, while recommending sectors such as pharmaceuticals, defence and power.
Market experts said fourth-quarter earnings remained strong and often surpassed expectations, signalling signs of economic recovery before the recent energy crisis.
Markets also gained after President Donald Trump said he had paused a planned attack on Iran and expressed optimism about a nuclear deal with Tehran.
Oil prices declined sharply, while Asian markets traded mixed. Overnight, the US Nasdaq slipped 0.51 per cent.
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