Mumbai, June 10: Indian equity markets traded firmly higher on Tuesday morning, buoyed by improving global sentiment after signs of a pause in hostilities between Iran and Israel and a decline in crude oil prices.
The benchmark BSE Sensex surged over 500 points, or 0.7 per cent, to touch an intraday high of 74,035.41, while the NSE Nifty gained more than 100 points, rising 0.6 per cent to 23,259.45 in early trade.
Market breadth remained positive, with broader markets outperforming frontline indices. The Nifty MidSmall Financial Services index emerged as the top sectoral gainer, advancing more than 1 per cent. Nifty Realty also gained over 1 per cent, while Nifty Auto rose nearly 0.9 per cent. Banking stocks witnessed buying interest, with both PSU Bank and Private Bank indices climbing up to 0.8 per cent.
Among broader indices, the Nifty Microcap 250 rose more than 1 per cent, while Nifty Midcap 50, Midcap 100 and Midcap 150 gained close to 1 per cent, reflecting strong participation from mid- and small-cap stocks.
Investor sentiment was further supported by a decline in market volatility. The India VIX, often referred to as the fear gauge, dropped more than 4 per cent to around 16, indicating reduced uncertainty among traders.
Market experts attributed the rally primarily to easing geopolitical concerns in the Middle East and falling crude oil prices. International benchmark Brent crude declined nearly 1 per cent to around $93 per barrel, while US West Texas Intermediate (WTI) crude fell to approximately $90 per barrel.
Analysts noted that lower crude oil prices are particularly beneficial for India, which imports a significant portion of its energy requirements. However, they cautioned that the situation remains fragile and there is no guarantee that the ceasefire between Iran and Israel will hold.
Another positive trigger for the market came from the United States, where a federal judge struck down former President Donald Trump’s proposed H-1B visa fee hike. The development is seen as mildly positive for Indian IT companies that rely heavily on skilled professionals working in the US.
Despite the rally, market experts urged caution, citing continued foreign institutional investor (FII) selling and lingering global uncertainties.
“The bulls are too weak to stage a strong comeback, while the bears remain strong enough to press selling on rallies. The sustained selling by FIIs shows no sign of fatigue. However, large-cap valuations, especially in the banking sector, remain attractive,” analysts observed.
Meanwhile, Iran and Israel announced a temporary pause in military strikes following an appeal by US President Donald Trump for immediate de-escalation. However, Tehran warned that it could resume attacks if Israel continues targeting Hezbollah positions in Lebanon.
Global markets also provided supportive cues. Asian equities traded mostly higher, led by Japan’s Nikkei, which gained more than 1 per cent, and South Korea’s KOSPI, which surged nearly 5 per cent. Other major regional indices also remained in positive territory.
On Wall Street, US markets ended higher overnight, with the S&P 500 advancing 0.3 per cent and the technology-heavy Nasdaq gaining nearly 1 per cent, adding to the positive momentum across global markets.
Market participants will continue to monitor geopolitical developments, crude oil prices, and foreign fund flows for further direction in the coming sessions.
