Indian equity benchmarks continued their upward momentum for the third consecutive session on Thursday, buoyed by easing geopolitical tensions and positive global cues, even as investors remained cautious ahead of the looming U.S. tariff deadline on July 9.
The BSE Sensex surged 625.47 points, or 0.75%, to close at 83,380.98, while the NSE Nifty climbed 193.15 points, or 0.76%, to settle at 25,437.90—its highest level in eight months.
Market sentiment was lifted by signs of de-escalation in the Middle East, particularly the ceasefire between Iran and Israel. U.S. President Donald Trump’s remarks at the NATO summit in The Hague, hinting at potential talks with Iran, further bolstered investor confidence.
Sectorally, gains were broad-based. Nifty PSU Bank led the charge with a 0.29% rise, followed by FMCG, Auto, and Realty indices. The only laggard was the Nifty IT index, which opened in the red. Among individual stocks, top gainers included Bharat Electronics, Tata Steel, Bharti Airtel, Bajaj Finance, and Adani Ports.
The broader market also reflected strength, with the Nifty Midcap and Smallcap indices rising 0.28% and 0.42%, respectively. Technical analysts noted that the Nifty’s price action suggests a potential breakout, with immediate resistance seen around the 25,500 mark.
Despite the rally, analysts urged caution due to unresolved trade tensions. “Markets are in risk-on mode, but the unresolved reciprocal tariff issue may cap the upside,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The rupee appreciated by 21 paise to 85.87 against the U.S. dollar, aided by a weaker greenback and improved foreign investor sentiment. However, rising crude oil prices and persistent FII outflows tempered gains.
Looking ahead, market participants will closely monitor U.S. inflation data and developments around the tariff deadline, which could influence the next leg of the rally.
Sectorally, gains were broad-based. Nifty PSU Bank led the charge with a 0.29% rise, followed by FMCG, Auto, and Realty indices. The only laggard was the Nifty IT index, which opened in the red. Among individual stocks, top gainers included Bharat Electronics, Tata Steel, Bharti Airtel, Bajaj Finance, and Adani Ports.
The broader market also reflected strength, with the Nifty Midcap and Smallcap indices rising 0.28% and 0.42%, respectively. Technical analysts noted that the Nifty’s price action suggests a potential breakout, with immediate resistance seen around the 25,500 mark.
Despite the rally, analysts urged caution due to unresolved trade tensions. “Markets are in risk-on mode, but the unresolved reciprocal tariff issue may cap the upside,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The rupee appreciated by 21 paise to 85.87 against the U.S. dollar, aided by a weaker greenback and improved foreign investor sentiment. However, rising crude oil prices and persistent FII outflows tempered gains.
Looking ahead, market participants will closely monitor U.S. inflation data and developments around the tariff deadline, which could influence the next leg of the rally. Looking ahead, market participants will closely monitor U.S. inflation data and developments around the tariff deadline, which could influence the next leg of the rally.
