Indian equity markets ended higher for the third consecutive session on optimism surrounding a potential de-escalation in tensions between the US and Iran, lifting investor sentiment across sectors.
The benchmark Nifty rose 1.12 per cent or 255 points to close at 22,968.25, while the Sensex gained 787 points, or 1.07 per cent, to settle at 74,106.85.
From a technical standpoint, experts said that Nifty is approaching the immediate resistance level near 23,000, which continues to act as a key hurdle.
“A sustained move above this level may open the path for further upside towards 23,200,” an analyst stated.
“On the downside, immediate support is now placed in the 22,800–22,750 zone, which earlier acted as resistance and has now turned into a support area, followed by a stronger base around the 22,550 level that served as a demand zone during the session,” a market expert said.
The rally was driven by reports suggesting that both the US and Iran have received a proposal aimed at ending hostilities.
According to these reports, a two-stage deal is being considered, with a final ceasefire agreement potentially taking shape within 15 to 120 days.
The proposal reportedly includes provisions related to nuclear curbs and sanctions relief, with an “Islamabad Accord” being discussed as part of the framework.
Investor sentiment improved on expectations that easing geopolitical tensions could stabilise global markets and reduce uncertainty, particularly in energy prices and capital flows.
Among individual stocks on the Nifty, Trent, SBI Life Insurance Company, and Titan Company emerged as the top gainers, reflecting broad-based buying interest.
The broader market also mirrored the positive trend, with the Nifty MidCap index rising 1.52 per cent and the Nifty SmallCap index gaining 1.29 per cent.
Sectorally, construction and banking-related indices led the gains. The Nifty Construction Durable index outperformed its peers, while the Nifty PSU Bank and Nifty Bank indices also saw notable buying.
However, the Nifty Oil and Gas index lagged the broader market, possibly due to volatility in crude oil prices amid ongoing geopolitical developments.
Analyst said that the market momentum remained upbeat as investors tracked global cues and developments around the proposed diplomatic resolution, which could play a key role in shaping near-term market direction.
(With inputs from IANS)
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