The BSE Sensex ended the day higher by 639 points, marking a gain of 0.8 percent, while the NSE Nifty50 advanced by 194 points, also rising 0.8 percent, to settle near the day’s high. The sustained upward momentum came after reports indicated that Iran had approached the United States with a proposal to reopen the Strait of Hormuz, signaling a potential de-escalation in Middle East tensions.
Investor sentiment was further supported by strong global cues. Major Asian markets, including Japan, South Korea, and Taiwan, recorded robust gains, led primarily by technology stocks. Meanwhile, United States markets touched record highs, driven by continued strength in the technology sector. These global trends reinforced optimism in domestic equities.
Among individual stocks, Sun Pharma, Tata Consultancy Services, and HCL Tech emerged as the top gainers of the session. In contrast, Axis Bank, Trent, and ICICI Bank were among the key laggards, witnessing selling pressure.
The broader market also reflected strong participation, with the BSE 150 Midcap index rising 1.4 percent and the BSE 250 SmallCap index gaining 1.9 percent. Sectoral indices traded largely in the green, with notable buying observed in information technology and power stocks.
Volatility in the market declined significantly, as the India VIX dropped nearly 5 percent to around 19. This decline indicates reduced investor anxiety and a more stable market environment, which typically supports sustained upward movement in equities.
In the derivatives segment, the GIFT Nifty was trading at 24,125, up by 171 points at the time of writing, suggesting continued positive momentum.
On the currency front, the Indian rupee was trading at 94.2 against the United States dollar. In the commodities market, gold prices for the latest contract on MCX declined by 0.4 percent to Rs 1,52,081 per 10 grams, while silver prices fell 0.6 percent to Rs 2,43,122 per kilogram.
Market experts also weighed in on sectoral trends, with Rahul Shah of Equitymaster stating that leading information technology firms such as Tata Consultancy Services and Infosys are not significantly threatened by artificial intelligence. He emphasized that their core business models remain strong. However, he noted that the primary concern lies in slower growth rather than erosion of competitive advantage. Referring to the CAP framework by Michael Mauboussin, Shah explained that while profitability remains stable, limited growth prospects may constrain overall returns.
The combination of easing geopolitical risks, strong global market performance, and declining volatility created a supportive environment for Indian equities, driving indices to close near their intraday highs and reinforcing bullish sentiment in the market.
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