Sensex, Nifty rise nearly 1% on Iran-Israel truce, global optimism

Sensex and Nifty rose to multi-month highs as global sentiment improved after Iran-Israel truce, but concerns over tariffs and geopolitical stability remain

Indian equity markets rose close to a per cent on Wednesday, buoying a global risk on sentiment triggered by the ceasefire between Iran and Israel, though investors remained wary of geopolitical risks.

 

The Sensex gained 700 points (0.85 per cent) to close at 82,756, while the Nifty advanced 200 points (0.8 per cent) to 25,245. Market capitalisation surged by ₹4 trillion, reaching ₹454 trillion. Both indices closed at their highest level since early October. Brent crude prices dipped 0.6 per cent to

$66 per barrel.

 

Foreign portfolio investors (FPIs) sold shares worth ₹2,428 crore. The selling was offset by domestic institutional investors who pumped in ₹2,373 crore. 

 

The ceasefire between Iran and Israel showed no signs of breaking on Wednesday, with both nations pledging to uphold the truce following US pressure over initial violations. However, market participants remained cautious, awaiting clearer signs of lasting peace after weeks of conflict that claimed hundreds of lives.  

 

“We expect the Indian market to remain firm on the back of reduced global geopolitical concerns and positive domestic cues.  Investors would focus on financials, supported by the RBI's recent liquidity-easing measures. Monsoon-linked sectors are also expected to be in the spotlight as rainfall trends improve. Meanwhile, capital market-related stocks are expected to benefit from heightened activity in the broader market and a robust IPO pipeline," said Siddhartha Khemka, head- research of wealth management of Motilal Oswal Financial Services. 

 

Investors have now shifted their focus to the global economy and how the US trade tariffs are affecting corporate profits and growth. Despite the calm on the surface, investors are varied in renewed geopolitical tensions. A looming tariff pause deadline, which is set to expire on July 8, is also giving investors jitters, with no major progress on trade deals.

 

The gains in the recent months have also left little room for further gains. The Sensex is just 3.6 per cent away from its all-time highs, while the Nifty is 3.7 per cent from their all-time highs registered in September. 

 

Market breadth was strong, with 2,779 stocks advancing and 1,262 declining.

 

"The recent market resilience despite mixed global cues reflects underlying strength, although heightened volatility continues to keep traders cautious. Notably, the Nifty has surpassed the 25,200 mark just ahead of the June monthly expiry. It will be crucial to see whether it can sustain above this level, especially given the divergent trends across sectors,' said Ajit Mishra, svp-research of Religare Broking.

 

Top weight HDFC Bank, which rose a per cent, was the biggest contributor to Sensex gains. Bharat Electronics, Kotak Mahindra Bank and Axis Bank were the only three declining stocks on the Sensex.