Sensex, Nifty surge as investors cheer easing geopolitical tensions

Indian equity markets traded higher on Thursday in early deals amid hopes of easing tensions in West Asia after Iran said it was reviewing latest proposal to end the conflictIn the morning trade Sensex jumped as much as 083 per cent or 627 points to hit an intraday high of 75945 while Nifty traded 084 per cent or 200 points higher at 23859On the sectoral front realty stocks led the gains with the Nifty Realty index rising 15 per cent Nifty Cement advanced 1 per cent while chemicals auto and media indices also traded higher PSU Bank and metal stocks too remained in positive territory during the session with all sectoral indices trading in the greenMeanwhile from the 50share benchmark pack Infosys Nestle India Trent SBI Life Insurance Sun Pharma Tata Consumer Products and ONGC were among the top laggardsCategorywise smallcap and midcap shares outperformed the benchmarks in early trade The Nifty Microcap 250 climbed over 1 per cent while the Nifty Smallcap 500 and Nifty Midcap 150 indices gained up to 1 per centMeanwhile India VIX declined over 4 per cent to around 18 signalling easing volatilityAnalysts said the recent momentum suggests investors are continuing to adopt a ldquobuy on dipsrdquo strategy supported by easing volatility and improving sentiment around foreign fund flowsAccording to market experts concerns over elevated valuations in AIlinked stocks in South Korean and Taiwanese markets could potentially divert foreign investor interest towards India where valuations are seen as relatively fair in several pocketsThey added that the trajectory of crude oil prices and rupee stability would remain key factors driving nearterm market directionExperts further noted that while fourthquarter earnings have remained largely healthy so far the impact of higher energy prices may become visible from the first quarter of FY27Moreover market sentiment improved after Iran said it was reviewing Washingtonrsquos latest proposal to end the conflict raising hopes of easing geopolitical tensions in West AsiaThe remarks came after US President Donald Trump indicated that Washington was willing to wait a few days for Tehranrsquos response while also warning of renewed attacks if negotiations failedIn the commodities market international benchmark Brent crude rose 132 per cent to USD 10641 per barrel while US WTI crude jumped nearly 2 per cent to USD 10011 per barrelGlobal market sentiment also remained positive Asian stocks traded in the green with Japanrsquos Nikkei rising over 3 per cent South Korearsquos KOSPI surging more than 7 per cent and Hong Kongrsquos Hang Seng trading marginally higherIn the US Wall Street ended on a bullish note with the SampP 500 closing 1 per cent higher and the Nasdaq settling 154 per cent upThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever