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Sensex, Nifty Soar on Easing Global Tensions; Analysts Cautious

Indian benchmark indices recorded their best session in over a month, with the Sensex closing above 80,000 and the Nifty near 24,766. The rally was fueled by reports suggesting a potential easing of US-Iran tensions, which improved global risk appetite. Broader markets outperformed the main indices, led by strong gains in metal, oil & gas, and construction stocks. Despite the surge, analysts remain cautious, viewing the move as a pullback until the Nifty sustainably trades above the 25,200 resistance level.

Key Points: Sensex, Nifty Rally as US-Iran Tensions Ease

  • Nifty gains 1.17%
  • Sensex surges 899 points
  • Broader markets outperform
  • Metal sector leads rally
  • India VIX cools off sharply
2 min read

Sensex, Nifty bounce back strongly as global tensions ease

Indian stock markets surged over 1% as easing geopolitical tensions boosted investor confidence. Key levels and top gainers analyzed.

"The market is not completely out of the woods yet, and the current move should be considered only a pullback as long as Nifty trades below the 25,200 level - Analyst"

Mumbai, March 5

Indian stock markets ended sharply higher on Thursday, with benchmark indices logging their best session in over a month as easing geopolitical tensions between the United States and Iran boosted investor confidence.

The Nifty closed 1.17 per cent, or 285.40 points, higher at 24,765.90. Meanwhile, the Sensex rose 899.71 points, or 1.14 per cent, to end the day at 80,015.90.

"The market is not completely out of the woods yet, and the current move should be considered only a pullback as long as Nifty trades below the 25,200 level," an analyst stated.

"On the downside, immediate support is placed at 24,600, and a break below this level could drag the index further towards 24,400," a market expert mentioned.

Market sentiment improved after reports suggested that Iran may be willing to abandon its nuclear programme if the United States presents a satisfactory alternative proposal.

The development raised hopes of easing tensions in the region, which in turn lifted global risk appetite.

Among the top gainers in the Nifty were Adani Ports and Special Economic Zone, Hindalco Industries, and Larsen & Toubro, which saw strong buying during the session.

Broader markets also performed well and outpaced the benchmark indices. The Nifty Midcap 100 ended 1.52 per cent higher, while the Nifty Smallcap 100 rose 1.58 per cent.

Sectorally, metal stocks led the rally, with the Nifty Metal Index gaining 2.3 per cent. Other sectors such as oil and gas and construction-related stocks also saw strong buying interest during the day.

Experts said that the positive momentum in the market reflected improving investor sentiment amid hopes that geopolitical tensions may ease and support global financial markets.

Meanwhile, India VIX cooled off sharply, declining nearly 16 per cent to slip below the 18 mark. Any further easing in volatility is likely to remain supportive of bullish sentiment, experts stated.

- IANS

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Reader Comments

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Priyanka N
Good to see L&T and Adani Ports leading. These are solid infra stocks that reflect our growth story. But the analyst is right, we need to cross 25,200 for real confidence. The volatility index cooling down is the best part.
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Aman W
While the rise is welcome, it feels like our markets are too dependent on foreign news. One day Iran, next day US Fed. When will our domestic fundamentals drive the show completely? Just a thought.
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Sarah B
Working in Mumbai's BKC, the mood in the office today was completely different from last week. The Sensex crossing 80k is a big psychological boost. Midcaps and smallcaps outperforming is a great sign for broader market health.
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Karthik V
Metals and infra rallying makes sense if global tensions ease and construction picks up pace. But please, retail investors like us, don't get carried away. Stick to your asset allocation. The "woods" are still nearby, as they said.
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Nisha Z
My father, a retired banker, always says the market has its own mood swings. Today was a happy swing! Hope this brings some stability. The rise in broader indices is more important than just the Sensex, I feel.

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