Sensex nears 79,000 as softer crude, easing geopolitical tensions lift markets

Mumbai — Indian equity markets opened on a positive note on Tuesday, with the BSE Sensex inching closer to the 79,000 mark and the Nifty 50 also trading higher. The rally was driven by easing crude oil prices and optimism around a potential peace deal between the United States and Iran.

In early trade, the Sensex climbed 445 points, or 0.56 per cent, to touch an intra-day high of 78,966. Meanwhile, the Nifty rose 118 points, or 0.48 per cent, to 24,483, supported by gains in realty, banking, metal, consumer durables and chemical stocks.

Sector-wise, buying was visible across the board. Realty stocks led the rally, followed by private banks, metals, consumer durables, PSU banks, chemicals and FMCG counters, indicating broad-based participation in the upmove.

However, not all stocks were in the green. Shares of SBI Life Insurance, HDFC Life Insurance, Infosys, Dr. Reddy's Laboratories, Bharat Electronics Limited, Tech Mahindra, Max Healthcare, Tata Consultancy Services, Cipla and Eicher Motors were among the early laggards.

The broader markets also reflected optimism, with mid-cap and small-cap indices outperforming and attracting buying interest.

Market sentiment was buoyed by reports suggesting that Iran may participate in peace talks with the US, potentially in Pakistan, raising hopes of reduced geopolitical tensions and improved global stability.

On the institutional front, foreign institutional investors (FIIs) remained net sellers on Monday, offloading equities worth Rs 1,059.93 crore. In contrast, domestic institutional investors (DIIs) continued to support the market, with net purchases of Rs 2,966.89 crore.

Analysts indicated that while the overall trend remains mildly positive, the market could see bouts of volatility. Ongoing consolidation near resistance levels and continued FII selling may trigger profit booking or sideways movement in the near term.

In the commodities market, crude oil prices declined, lending further support to equities. Brent Crude fell 0.93 per cent to $94.59 per barrel, while West Texas Intermediate dropped 2.19 per cent to $85.5.

Globally, US markets ended slightly lower, with the S&P 500 and Nasdaq Composite slipping after recent gains, amid lingering concerns over US-Iran tensions.

Asian markets presented a mixed picture. Japan’s Nikkei 225, Hong Kong’s Hang Seng Index and South Korea’s KOSPI traded higher, while Indonesia’s Jakarta Composite Index and China’s Shanghai Composite Index saw declines.

With inputs from IANS