Markets rally amid easing geopolitical tensions

Ceasefire Boost | Sensex jumps 504.86 points, NSE Nifty climbs 156.80 points

PTI

mumbai

Stock market benchmark indices Sensex and Nifty rallied nearly 1% on Friday, driven by optimism surrounding easing geopolitical tensions, falling crude prices, and fresh foreign fund inflows.

Renewed hopes of a diplomatic resolution between the US and Iran, along with a 10-day ceasefire between Israel and Lebanon, have materially improved global risk appetite, a market analyst said.

The 30-share BSE Sensex jumped 504.86 points, or 0.65%, to settle at 78,493.54. During the day, it surged 564.77 points, or 0.72%, to 78,553.45. A total of 3,043 stocks advanced while 1,284 declined and 166 remained unchanged on the BSE.

The 50-share NSE Nifty climbed 156.80 points, or 0.65%, to end at 24,353.55. Investors' wealth surged by ₹4.84 lakh crore to ₹4,65,64,461.51 crore ($5.02 trillion) on the BSE.

"Overall, the session reflects growing market confidence in a potential near-term resolution to the Middle East conflict, alongside expectations of softer energy prices supporting risk assets," Ponmudi R, CEO of Enrich Money, said.

On the weekly front, the BSE benchmark jumped 943.29 points or 1.21%, and the Nifty climbed 302.95 points or 1.25%.

From the 30 Sensex firms, Hindustan Unilever, Power Grid, Reliance Industries, Bharat Electronics, Tech Mahindra and Titan were among the major winners. In contrast, Sun Pharma, Mahindra & Mahindra, Larsen & Toubro and HCL Tech were among the laggards.

The BSE SmallCap Select index jumped 1.76%, and the MidCap Select index climbed 1.31%. All indices ended higher. FMCG climbed 2.57%, capital goods 2.19%, power 1.95%, utilities 1.51%, energy 1.43% and industrials 1.32%.

"The primary catalyst for today’s strength was the de-escalation in West Asia. Renewed hopes of a diplomatic resolution between the US and Iran, along with a 10-day ceasefire between Israel and Lebanon, have materially improved global risk appetite," Hariprasad K, research analyst and founder of Livelong Wealth, said.

Hariprasad added that this has reduced concerns around a sustained spike in crude oil prices, which had earlier weighed on inflation expectations, currency stability, and overall market sentiment.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite and Hong Kong's Hang Seng ended lower. Markets in Europe were trading higher in mid-session deals on Friday. US markets ended in positive territory on Thursday. Foreign Institutional Investors (FIIs) bought equities worth ₹382.36 crore on Thursday, according to exchange data.

"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 $100/bbl, easing pressure on import-dependent economies," Vinod Nair, head of research at Geojit Investments Limited, said.