Indian equity markets trade higher in early deals amid positive global cues
Mumbai, May 21
Indian equity markets traded higher on Thursday in early deals amid hopes of easing tensions in West Asia after Iran said it was reviewing latest proposal to end the conflict.
In the morning trade, Sensex jumped as much as 0.83 per cent or 627 points to hit an intraday high of 75,945, while Nifty traded 0.84 per cent or 200 points higher at 23,859.
On the sectoral front, realty stocks led the gains, with the Nifty Realty index rising 1.5 per cent. Nifty Cement advanced 1 per cent, while chemicals, auto and media indices also traded higher. PSU Bank and metal stocks too remained in positive territory during the session, with all sectoral indices trading in the green.
Meanwhile, from the 50-share benchmark pack, Infosys, Nestle India, Trent, SBI Life Insurance, Sun Pharma, Tata Consumer Products and ONGC were among the top laggards.
Category-wise, smallcap and midcap shares outperformed the benchmarks in early trade. The Nifty Microcap 250 climbed over 1 per cent, while the Nifty Smallcap 500 and Nifty Midcap 150 indices gained up to 1 per cent.
Meanwhile, India VIX declined over 4 per cent to around 18, signalling easing volatility.
Analysts said the recent momentum suggests investors are continuing to adopt a "buy on dips" strategy, supported by easing volatility and improving sentiment around foreign fund flows.
According to market experts, concerns over elevated valuations in AI-linked stocks in South Korean and Taiwanese markets could potentially divert foreign investor interest towards India, where valuations are seen as relatively fair in several pockets.
They added that the trajectory of crude oil prices and rupee stability would remain key factors driving near-term market direction.
Experts further noted that while fourth-quarter earnings have remained largely healthy so far, the impact of higher energy prices may become visible from the first quarter of FY27.
Moreover, market sentiment improved after Iran said it was reviewing Washington's latest proposal to end the conflict, raising hopes of easing geopolitical tensions in West Asia.
The remarks came after US President Donald Trump indicated that Washington was willing to wait a few days for Tehran's response, while also warning of renewed attacks if negotiations failed.
In the commodities market, international benchmark Brent crude rose 1.32 per cent to $106.41 per barrel, while US WTI crude jumped nearly 2 per cent to $100.11 per barrel.
Global market sentiment also remained positive. Asian stocks traded in the green, with Japan's Nikkei rising over 3 per cent, South Korea's KOSPI surging more than 7 per cent, and Hong Kong's Hang Seng trading marginally higher.
In the US, Wall Street ended on a bullish note, with the S&P 500 closing 1 per cent higher and the Nasdaq settling 1.54 per cent up.
— IANS
Reader Comments
As someone who tracks both US and Indian markets, this divergence is interesting. While Wall Street is up on tech hopes, India's rally is more broad-based with realty and cement leading. The VIX drop is encouraging. Let's see if FII inflows sustain.
Smallcaps outperforming! 🙌 My mutual fund portfolio is smiling today. But honestly, the Iran situation and oil prices still make me nervous. Hope the government keeps the economy stable despite global headwinds.
Interesting how some analysts are pitching India as an alternative to Korean and Taiwanese tech stocks. While our valuations are more reasonable, let's not forget we have our own challenges - earnings growth needs to catch up with expectations. Still, good to see positive sentiment.
Bhai, Sensex 75k+ and Nifty near 24k - who would have thought 5 years back? 😄 But I'm a bit cautious about the PSU Bank rally. Fundamentals still mixed. Better to stick with quality names like the ones lagging today - Infosys and Sun Pharma are good long-term bets.
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