Indian stock market opens higher as geopolitical tensions ease

Mumbai, June 24 (IANS) The Indian benchmark indices opened in green on Tuesday amid positive global cues, as geopolitical tensions eased after Iran–Israel ceasefire announced by US President Donald Trump.

Buying was seen in the auto, IT, PSU bank and financial service sectors in the early trade.

At around 9.31 am, Sensex was trading 756.5 points or 0.92 per cent up at 82,653.33 while the Nifty added 229 point or 0.92 per cent at 25,200.90

According to analysts, the dramatic developments in West Asia culminating in President Trump’s announcement of ceasefire indicate that the worst of the conflict is over.

"The sharp reactions in the crude oil and stock markets suggest the geopolitical situation limping back to normalcy," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Nifty Bank was up 557.25 points or 0.99 per cent at 56,616.60. The Nifty Midcap 100 index was trading at 58,617.80 after adding 411 points or 0.71 per cent. Nifty Smallcap 100 index was at 18,443.95 after climbing 123.05 points or 0.67 per cent.

"The recent recovery in both Nifty and Bank Nifty indicates strong buying interest at lower levels, but a decisive breakout above key resistance zones—25,200 for Nifty and 56,300 for Bank Nifty—is still required for sustained upside, said Aakash Shah, Technical Research Analyst of Choice Broking

Given the current environment of heightened volatility and uncertainty, investors should remain cautiously optimistic, he added.

Meanwhile, in the Sensex pack, Adani Ports, M&M, UltraTech Cement, L&T, Titan, SBI, Asian Paints, Bajaj Finance and Bajaj Finserv were the top gainers. Whereas, NTPC, BEL and Trent were the top losers.

From an institutional perspective, foreign institutional investors (FIIs) were net sellers on June 23, selling equities worth Rs 1,874.38 crores. Meanwhile, domestic institutional investors (DIIs) remained buyers, purchasing equities worth Rs 5,591.77 crores.

In the Asian markets, Bangkok, Japan, China, Seoul, Hong Kong and Jakarta were trading in green.

In the last trading session, Dow Jones in the US closed at 42,581.78, up 374.96 points, or 0.89 per cent. The S&P 500 ended with a gain of 57.33 points, or 0.96 per cent, at 6,025.17 and the Nasdaq closed at 19,630.97, up 183.56 points, or 0.94 per cent.

--IANS

skt/na