FPJ News Service mumbai

Investors remained bullish on Friday amid de-escalation in geopolitical tensions, softening crude oil prices, and reports from the White House indicating the possibility of extending the July 8-9 deadline for reimposing reciprocal tariffs.

Optimism gathered further momentum as FIIs bought equities worth Rs 13,991 crore in two days. The BSE Sensex climbed 303.03 points and settled at 84,058.90. The 50-share NSE Nifty rose 88.80 points to 25,637.80. Equity investors became richer by Rs 12.26 lakh crore as the mcap of BSE-listed firms soared to Rs 460 lakh crore in four trading days.

“Key catalysts like the ceasefire in the Middle East and optimism on easing trade tensions ahead of the deadline have cleared the clouds in the minds of investors. After consecutive days of selling, FIIs have turned net buyers in the domestic market, contributing to improved market stability in the near term. Moreover, benign oil prices and a strengthening INR influenced investors to focus on domestic growth themes. Expectations of accelerating earnings, driven by resilient consumption and a relatively stable macroeconomic backdrop, are further reinforcing optimism,” said Vinod Nair, head of research, Geojit Investments.

“It appears that the rally is unlikely to be impacted by the approaching July 9 tariff deadline imposed by President Trump. A significant development in the currency market is the sustained weakness in the dollar with the dollar index declining to around 97.

This big FII buying has lifted large caps like HDFC Bank, ICICI Bank, Bharti, RIL and Bajaj Finance, which in turn, has contributed to the sharp spike in the benchmark indices. The market momentum is strong but some profit-booking is likely in the near-term,” said Dr VK Vijayakumar, chief investment strategist at Geojit Investments.