Sensex, Nifty close higher as Mideast tensions ease, FIIs return

Indian stock markets recovered to close higher, with Sensex up 504 points and Nifty up 156 points. The gains were driven by easing geopolitical tensions, a return of FII inflows, a stronger rupee, and a drop in crude oil prices below $100.

The domestic stock markets recovered from a weak start on Friday and closed higher, supported by improving geopolitical sentiment and a return of foreign institutional investor (FII) inflows. The NSE Nifty 50 index ended at 24,353.55, gaining 156.80 points or 0.65 per cent, while the BSE Sensex closed at 78,493.54, up by 504.86 points or 0.65 per cent.

Market experts said the positive momentum was driven by easing tensions in West Asia and a reversal in FII flows into net buying territory.

Market Drivers

Vinod Nair, Head of Research at Geojit Investments Limited, "The domestic market closed the day higher, supported by improving prospects of a Middle East resolution and a reversal in FII flows into net buying. A ceasefire between Israel and Lebanon helped keep crude below USD 100 per barrel, easing pressure on import-dependent economies." He added that the rupee strengthened during the session, aided by Reserve Bank of India measures and softening geopolitical tensions.

Sectoral Performance

Sectorally, all indices on the NSE ended in positive territory. Nifty FMCG led the gains with a sharp rise of 2.65 per cent, supported by price hikes, strong business updates and valuation comfort. Nifty Media surged 1.39 per cent, while Nifty Metal gained 1.06 per cent. Nifty PSU Bank rose by 0.70 per cent, and Nifty Realty index jumped more than 1 per cent. Nifty Auto also edged higher by 0.20 per cent.

Commodities Market

In the commodities market, Brent crude prices remained on a downward trend, trading at USD 96 per barrel at the time of filing this report, providing some relief to inflation concerns. Gold prices remained largely flat at Rs 1,53,173 per 10 grams for 24 karat, while silver prices rose by 1.46 per cent to Rs 2,52,220 per kg.

Global Market Cues

Meanwhile, global cues remained mixed. Most Asian markets ended lower, with Japan's Nikkei 225 index declining by more than 1 per cent to 58,919. Singapore's Straits Times index fell by 0.20 per cent to 4,997, while Hong Kong's Hang Seng index declined by 0.75 per cent to 26,198. Taiwan's weighted index slipped 0.89 per cent to 36,804, and South Korea's Kospi index fell 0.55 per cent to 6,191.

Future Outlook

Experts noted that while improving geopolitical conditions supported markets, the ongoing Q4 earnings season will remain a key factor for market direction and FY27 outlook. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)