Indian equity benchmarks continued to rally ahead on Tuesday, supported by positive global cues and optimism surrounding the recently announced peace agreement between the United States and Iran.
The BSE Sensex rang the opening bell near 76,500, climbing more than 200 points, while the NSE Nifty50 started trading above 23,900, inching up 53 points, as of 9:15 AM.
GIFT Nifty Signals Muted Opening
Early indications from the derivatives market pointed to a measured start for domestic equities.
The GIFT Nifty was trading around 23,940, up roughly 23 points, suggesting a largely range-bound opening as traders assess global developments and fresh market triggers.
In the pre-open session at around 9:05 AM, the Sensex was trading 283.83 points, or 0.37 per cent, higher at 76,548.16, while the Nifty gained 56.25 points, or 0.24 per cent, to 23,910.10.
Despite the positive start, investors are likely to remain cautious as markets await greater clarity on the terms and implementation timeline of the US-Iran agreement.
Focus Shifts To Details Of US-Iran Agreement
Investor attention remains firmly fixed on developments in West Asia after US President Donald Trump announced that the United States and Iran had reached a peace agreement aimed at ending months of conflict.
Market participants are now awaiting details of the proposed settlement, which could pave the way for the reopening of the Strait of Hormuz as early as Friday.
The strategically important shipping route is a key artery for global oil supplies, and any move towards restoring normal operations is expected to ease concerns around energy security and inflation.
Asian Markets Trade Mixed After Recent Rally
Equity markets across the Asia-Pacific region showed a mixed trend on Tuesday as investors paused to evaluate the implications of the US-Iran deal.
Japan’s Nikkei 225 and Hong Kong’s Hang Seng traded lower, while South Korea’s Kospi advanced more than 1 per cent, extending gains seen in global markets after the peace announcement.
The mixed performance suggests that investors are adopting a wait-and-watch approach following the recent risk-on rally.
Wall Street Extends Gains
US equities ended sharply higher overnight, with major indices building on gains sparked by easing geopolitical tensions.
The Dow Jones Industrial Average closed at a record high, while the S&P 500 and the Nasdaq Composite posted strong advances. Technology stocks led the rally as investors shifted back towards growth-oriented assets amid improving risk sentiment.
The robust performance on Wall Street provided additional support to global equities heading into Tuesday’s session.
Crude Oil Remains Stable Near Multi-Week Lows
Oil prices showed limited movement after their recent sharp decline.
Brent crude futures were trading around $83.20 per barrel, holding near their lowest levels in weeks after the prospect of a Hormuz reopening eased fears of supply disruptions.
For India, softer crude oil prices are viewed as a positive development, helping reduce inflationary pressures and supporting the country’s external balances.
Gold And Silver Edge Lower
Precious metals traded slightly lower in early deals as investors rotated towards risk assets.
Gold futures slipped marginally, while silver futures declined more than 1 per cent, reflecting reduced demand for traditional safe-haven investments following the improvement in geopolitical sentiment.
