Indian Stock Indices Thrive Amid Global Optimism

In a remarkable display of resilience, Indian stock indices remained in the green for the fourth consecutive session, bolstered by supportive global cues. Positive developments on the geopolitical front, with relative calm in the Israel-Iran conflict, and the possibility of the U.S. extending its tariff deadline, have uplifted market spirits.

A White House spokesperson hinted on Thursday that the deadline for reciprocal tariffs could be postponed, although it's a decision that ultimately rests with President Donald Trump. Complementing this, Trump mentioned a 'great deal' looming with India, further buoying investor optimism as Indian negotiators engage in bilateral trade discussions in the U.S.

India's robust domestic fundamentals, proactive Reserve Bank of India, and favorable monsoon conditions are contributing positively to market dynamics. As U.S. markets soar to record highs and the dollar dips, emerging markets like India gain traction. Notably, Sensex concluded at 84,058 points, up by 303 points, while Nifty rose by 89 points to close at 25,637 points.

Sectoral indices such as Nifty metal, pharma, PSU banks, oil and gas, and IT saw notable gains. Conversely, Nifty realty, consumer durables, and FMCG witnessed declines, based on NSE data. Market performance continues to impress, even amid ongoing global market volatility triggered by looming U.S. tariffs. Inflation rates in India remain comfortable, adding to the positive sentiment for domestic equities.

Vinod Nair, Head of Research at Geojit Investments Limited, stated, 'Key catalysts like the Middle East ceasefire and optimism over easing trade tensions have alleviated investor concerns.' He noted that Foreign Institutional Investors (FIIs) have turned net buyers, enhancing market stability. Additionally, benign oil prices, a strengthening INR, and expectations of accelerated earnings further bolster the market outlook.

(With inputs from agencies.)