Sensex Surges Over 400 Points As Geopolitical Tensions Ease

Indian stock markets opened with strong gains on Wednesday as global sentiment improved and geopolitical tensions subsided.

The Sensex rose 445.6 points, or 0.54 per cent, to reach 82,500.73, while the Nifty gained 130.15 points, or 0.52 per cent, touching 25,174.50 by 9:25 AM.

Analysts highlighted the market’s resilience in recent sessions despite heightened uncertainty, including a brief India-Pakistan conflict and ongoing instability in West Asia.

“Even during the short India-Pakistan conflict, the market has been resilient. A significant contributor to this resilience has been FII buying during the crisis,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Sector performance & key gainers

Among the sectors, IT, auto, and pharma stocks led the rally.

The Nifty Bank index edged up 31.25 points (0.06 per cent) to trade at 56,493.15.

Meanwhile, the Nifty Midcap 100 index added 245.40 points (0.42 per cent) to reach 58,867.80, and the Nifty Smallcap 100 gained 165.10 points (0.89 per cent), trading at 18,617.85.

In the Sensex pack, Titan, UltraTech Cement, Trent, HCL Tech, Adani Ports, Tech Mahindra, Tata Steel, PowerGrid, Hindustan Unilever, and L&T were the top performers.

On the other hand, Kotak Mahindra Bank, ICICI Bank, BEL, and Axis Bank were among the leading laggards.

FII & DII activity

Foreign institutional investors (FIIs), who have typically supported market rallies, turned net sellers on June 24, offloading equities worth ₹5,266.01 crore.

Meanwhile, domestic institutional investors (DIIs) remained net buyers, purchasing shares worth ₹5,209.60 crore.

Experts believe sustained inflows into mutual funds have strengthened DII buying patterns, which help cushion the market against FII-led volatility.

“This will impart resilience to the market even when FIIs sell on valuation concerns,” experts noted.

Asian markets presented a mixed picture. Japan, China, Seoul, and Hong Kong traded in the green, whereas Bangkok and Jakarta remained in the red.

On Wall Street, the previous trading session closed positively.

The Dow Jones surged 507.24 points (1.19 per cent) to 42,581.78, the S&P 500 rose by 67.01 points (1.11 per cent) to 6,025.17, and the Nasdaq climbed 281.56 points (1.43 per cent) to settle at 19,630.97.

With easing tensions and global cues turning favourable, analysts expect Indian markets to maintain their positive momentum in the short term, although vigilance over FII activity and geopolitical developments remains crucial.

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