Indian markets rally despite Israel-Iran tensions; Sensex jumps 677 pts, Nifty nears 25,000

Despite mounting global uncertainty triggered by escalating tensions in the Middle East, Indian stock markets remained resilient. The geopolitical landscape took a sharp turn as Israeli military strikes on Iran raised alarms over potential disruptions in oil supply and regional stability, unsettling global investors.

Benchmark indices ended Monday’s session on a strong note, led by gains in heavyweight stocks across financials, IT, and auto sectors. The BSE Sensex surged 677 points to close at 81,796, up 0.84%, while the NSE Nifty 50 added 227 points, or 0.92%, to settle at 24,946. The indices saw a steady climb through the day, with both benchmarks maintaining positive momentum after a gap-up opening. Buying interest remained broad-based, supported by easing inflation expectations and hopes of further policy stability.

Yet, the domestic market opened on a mildly positive note with the Nifty starting at 24,732. After briefly dipping to an intraday low of 24,703, the index staged a strong rebound, surging to an intraday high of 24,967.

On the sectoral front, most indices ended in the green, reflecting improved investor sentiment. Both Sensex and Nifty hovered near their intraday highs in the latter part of the session, with Nifty inching closer to the 25,000 mark. The broader market also mirrored the benchmark trend, indicating robust participation. Analysts attribute today’s rally to global cues, declining crude oil prices, and persistent foreign institutional inflows. Traders will now look ahead to upcoming global central bank decisions and domestic macro data for further direction.

"Sectoral performance was broadly positive, with major indices including IT, Realty, Metals, and Oil & Gas driving the rally. Nearly all sectors ended in the green, underscoring market-wide strength," added Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity.

"On the stock-specific front, Tata Motors witnessed a sharp decline of 5% after its UK-based subsidiary, Jaguar Land Rover (JLR), flagged growing pressure in China’s premium car segment for FY25, despite China being the largest automobile market globally," said Kewat.

"In the derivatives segment, market breadth remained strong with 195 stocks advancing against 30 declining. Notable open interest build-up was observed in stocks such as Asian Paints, Tata Motors, Shree Cement, PI Industries, and KPIT Technologies—signaling heightened trader activity and interest," added Kewat.