Stock Market Rises as Geopolitical Tensions Ease; Sensex Gains Over 400 Points

Mumbai: Indian stock markets opened on a strong note Wednesday, buoyed by positive global cues and easing geopolitical tensions. Buying interest was seen across key sectors such as IT, auto, and pharma in early trade.

By 9:25 a.m., the Sensex had climbed 445.6 points or 0.54% to reach 82,500.73, while the Nifty rose by 130.15 points or 0.52%, trading at 25,174.50.

Analysts attribute the market's strength to its notable resilience despite recent global headwinds, including tensions in West Asia.

“The market has shown remarkable stability even during the brief India-Pakistan conflict. A key driver has been foreign institutional investor (FII) buying during the crisis,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The Nifty Bank index edged up 31.25 points or 0.06% to 56,493.15. The Nifty Midcap 100 gained 245.40 points or 0.42%, trading at 58,867.80, while the Nifty Smallcap 100 surged 165.10 points or 0.89% to 18,617.85.

Top gainers in the Sensex pack included Titan, UltraTech Cement, Trent, HCL Tech, Adani Ports, Tech Mahindra, Tata Steel, PowerGrid, Hindustan Unilever, and Larsen & Toubro. On the losing side were Kotak Mahindra Bank, ICICI Bank, Bharat Electronics Ltd (BEL), and Axis Bank.

Interestingly, while FIIs have resumed selling as the Middle East tensions ease, domestic institutional investors (DIIs) have continued to buy, supported by steady inflows into mutual funds.

“This ongoing DII support is lending strength to the market, even as FIIs book profits due to valuation concerns,” experts noted.

FIIs were net sellers on June 24, offloading equities worth ?5,266.01 crore. In contrast, DIIs bought equities worth ?5,209.60 crore.

Across Asia, stock markets were mostly positive, with Japan, China, Seoul, and Hong Kong trading in the green, while Bangkok and Jakarta edged lower.

In the U.S., major indices closed higher in the previous session. The Dow Jones gained 507.24 points (1.19%) to close at 42,581.78, the S&P 500 rose 67.01 points (1.11%) to 6,025.17, and the Nasdaq advanced 281.56 points (1.43%) to finish at 19,630.97.

With inputs from IANS