Sensex, Nifty surge as Middle East tensions de-escalate

Mumbai: The Indian stock market opened in the green on Wednesday, with the Sensex and Nifty gaining strength due to easing tensions in the Middle East and positive sentiments in global markets. The Sensex was up 328.73 points or 0.40 per cent at 82,383.84, and the Nifty was up 91.50 points or 0.37 per cent at 25,135.85.

This positive trend follows a sharp upside rally in the US indices on Tuesday, with the Nasdaq and S&P 500 nearing their all-time highs. The tentative ceasefire between Israel and Iran has boosted investor sentiment, with markets ignoring tail risks and bidding up stocks. Globally, the S&P 500 is hovering near record highs, with key moving averages and momentum indicators pointing towards continued bullish strength. Although both nations have accused each other of breaching the agreement, market participants remained optimistic about a potential de-escalation in Middle East tensions.

ANI reports that the experts expect the market to maintain its positive bias, with the zone of 24,930-24,900 acting as immediate support for the Nifty. The next crucial support is placed at 24,750. Investors are also shifting focus to upcoming global events, including the July 9 deadline for US tariff decisions. According to Ajay Baga, a banking and market expert, the Trump Tax bill will be a key focus area for markets, and a potential resolution or deferment of tariff concerns could lead to a continued upward trend.

Fed Chair Powell's testimony to the US Congress was as per expectations, with markets seeing dovishness in his assertion that the FOMC would ride to the rescue if labor markets weakened unexpectedly. This has contributed to the positive sentiment in the market. On Tuesday, Indian stocks closed higher, with the BSE Sensex gaining approximately 158 points. The Nifty 50 also ended the session above the 25,000 mark, reflecting a positive trend in the market. However, experts caution that the market remains fragile, and investors should be prepared for potential volatility.
With inputs from ANI