D-Street on Wednesday cheered the de-escalation of tensions between Iran and Israel, as IT, auto and consumer durables sectors. The 30-component S&P BSE Sensex closed 700 points or 0.85% higher at 82,755.51, while the Nifty 50 index was up by 0.8% or 200 points, closing the session at 25,244.75.
Meanwhile, Banking gauge Nifty Bank settled at 56,591, higher by 0.23% or 129 points.
Gainers and losers of the day
Nifty's breadth was skewed in favour of the bulls as 42 stocks ended in the green and 8 in the red. The top gainer from the index was Titan Company, which ended with a gain of 3.66%, followed by M&M and Grasim, which were up by over 2%.
Among top losers were BEL (down 2.9%) and Kotak Mahindra Bank (witnessing a decline of 1.3%).
In the broader market, Kirloskar Brothers shares ended with a sharp surge of 19.25%, followed by Jai Balaji Industries shares, which shot up by 15.5%. On the other hand, GRSE and Data Patterns were the top losers, with losses of over 5% each.
Expert View
“Indian equity markets have staged a recovery, supported by easing geopolitical tensions in the Middle East and a moderation in crude oil prices. While FIIs continue to withdraw capital, positive global cues are helping sustain domestic market momentum. Large-cap stocks, especially in IT and auto, are outperforming, aided by a strong dollar and improved risk appetite,” said Vinod Nair, Head of Research at Geojit Investments.
“Domestically, a favourable monsoon forecast, and moderating inflation are further underpinning the optimism. Although the prospect of new U.S. tariffs presents a potential headwind, near-term market sentiment remains broadly positive,” he added.
On the technical front, Rupak De, Senior Technical Analyst at LKP Securities said, “The Nifty remained highly volatile as updates from the Middle East crisis zone impacted Indian equities. However, the overall sentiment remains positive, with a possibility of a rise towards 25,350. Immediate support is placed at 25,000; a break below this level could lead to a drift towards 24,850. On the other hand, if the index holds above 25,000, strength may persist, and the sentiment could favour long traders”.
Global Market
Stocks ticked higher and crude oil held not far from multi-week lows on Wednesday, as investors took a ceasefire between Israel and Iran as a green light to head back into riskier assets and cast aside immediate worries about an energy shock.
Japan's Nikkei rose 0.4%, while Hong Kong's Hang Seng climbed 1.3% and mainland Chinese blue chips gained 1.44%, closing at their highest level since March 20.
Meanwhile, around 4 pm today, Dow Jones, Nasdaq as well as the S&P 500 were trading with gains of over 1% each.
Currency watch
Rupee traded flat near 86.10 after a sharp rally of over 0.75 seen in the previous session, taking a breather within a narrow range of 86.00–86.15. The Indian Rupee has stabilised subsequent to two days of heightened volatility, a period influenced by prevailing geopolitical uncertainties.
“Market participants are now eyeing upcoming triggers from the U.S., including the PCE Price Index and GDP data later this week. The rupee is expected to trade in a range of 85.70 to 86.25,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
“The rupee has performed moderately among the Asian currencies; a development likely attributable to the Reserve Bank of India's recent implementation of measures designed to manage short-term liquidity within the market. Concurrently, the broad-based appreciation of the US Dollar and recovery in crude oil prices have collectively exerted downward pressure on the rupee,” added Dilip Parmar, Research Analyst at HDFC Securities.
Crude oil moves
Brent crude futures were trading about 0.8% higher at to $66.66 per barrel, while the. U.S. West Texas Intermediate crude was up as much to trade near $65 per barrel.
Brent on Tuesday, settled at its lowest since June 10 and WTI since June 5, both before Israel launched a surprise attack on key Iranian military and nuclear facilities on June 13.
(With inputs from agency)
Meanwhile, Banking gauge Nifty Bank settled at 56,591, higher by 0.23% or 129 points.
Gainers and losers of the day
Nifty's breadth was skewed in favour of the bulls as 42 stocks ended in the green and 8 in the red. The top gainer from the index was Titan Company, which ended with a gain of 3.66%, followed by M&M and Grasim, which were up by over 2%.
Among top losers were BEL (down 2.9%) and Kotak Mahindra Bank (witnessing a decline of 1.3%).
In the broader market, Kirloskar Brothers shares ended with a sharp surge of 19.25%, followed by Jai Balaji Industries shares, which shot up by 15.5%. On the other hand, GRSE and Data Patterns were the top losers, with losses of over 5% each.
Expert View
“Indian equity markets have staged a recovery, supported by easing geopolitical tensions in the Middle East and a moderation in crude oil prices. While FIIs continue to withdraw capital, positive global cues are helping sustain domestic market momentum. Large-cap stocks, especially in IT and auto, are outperforming, aided by a strong dollar and improved risk appetite,” said Vinod Nair, Head of Research at Geojit Investments.
“Domestically, a favourable monsoon forecast, and moderating inflation are further underpinning the optimism. Although the prospect of new U.S. tariffs presents a potential headwind, near-term market sentiment remains broadly positive,” he added.
On the technical front, Rupak De, Senior Technical Analyst at LKP Securities said, “The Nifty remained highly volatile as updates from the Middle East crisis zone impacted Indian equities. However, the overall sentiment remains positive, with a possibility of a rise towards 25,350. Immediate support is placed at 25,000; a break below this level could lead to a drift towards 24,850. On the other hand, if the index holds above 25,000, strength may persist, and the sentiment could favour long traders”.
Global Market
Stocks ticked higher and crude oil held not far from multi-week lows on Wednesday, as investors took a ceasefire between Israel and Iran as a green light to head back into riskier assets and cast aside immediate worries about an energy shock.
Japan's Nikkei rose 0.4%, while Hong Kong's Hang Seng climbed 1.3% and mainland Chinese blue chips gained 1.44%, closing at their highest level since March 20.
Meanwhile, around 4 pm today, Dow Jones, Nasdaq as well as the S&P 500 were trading with gains of over 1% each.
Currency watch
Rupee traded flat near 86.10 after a sharp rally of over 0.75 seen in the previous session, taking a breather within a narrow range of 86.00–86.15. The Indian Rupee has stabilised subsequent to two days of heightened volatility, a period influenced by prevailing geopolitical uncertainties.
“Market participants are now eyeing upcoming triggers from the U.S., including the PCE Price Index and GDP data later this week. The rupee is expected to trade in a range of 85.70 to 86.25,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
“The rupee has performed moderately among the Asian currencies; a development likely attributable to the Reserve Bank of India's recent implementation of measures designed to manage short-term liquidity within the market. Concurrently, the broad-based appreciation of the US Dollar and recovery in crude oil prices have collectively exerted downward pressure on the rupee,” added Dilip Parmar, Research Analyst at HDFC Securities.
Crude oil moves
Brent crude futures were trading about 0.8% higher at to $66.66 per barrel, while the. U.S. West Texas Intermediate crude was up as much to trade near $65 per barrel.
Brent on Tuesday, settled at its lowest since June 10 and WTI since June 5, both before Israel launched a surprise attack on key Iranian military and nuclear facilities on June 13.
(With inputs from agency)
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