Sensex gains 1,859 points, Nifty jumps 577 points over the last 3 trading sessions on Iran-Israel ceasefire, easing oil prices

“The benchmark index reflected strong investor confidence, underpinned by the apparent stability of the Middle East ceasefire, which has eased concerns over potential supply chain disruptions,” said Vinod Nair, Head of Research, Geojit Investments Ltd.

The Brent crude oil prices, which touched an intraday of $81.40 per barrel on June 23 amid escalating West Asia tensions, have currently eased to $67.87 per barrel.

“After consolidating for over five weeks, markets have finally resumed their uptrend, and we expect Nifty to gradually move towards its record high, with a possible pause around the 25,700–25,800 zone. All key sectors, except FMCG, are contributing to the move on a rotational basis,” said Ajit Mishra, Senior Vice President (Research), Religare Broking Ltd.

On Thursday, the market tone was positive from the start, supported by stable global cues, followed by a range-bound move in the first half. However, momentum picked up as the session progressed, driven by strong buying in select heavyweights across sectors.

The broader indices also moved higher, adding nearly half a percent each. The Nifty Midcap 100 and Nifty Smallcap 100 rose 0.59 per cent and 0.42 per cent.

Ten of the 13 major sectoral indices advanced, with the Nifty Metal index gaining 2.3 per cent as a weaker US dollar made dollar-denominated commodities more attractive to global buyers.

“The dollar weakened after US President Donald Trump’s renewed criticism of the Federal Reserve reignited concerns over the central bank’s independence, pressuring the greenback and boosting commodity-linked sectors globally,” said Gaurav Garg, Lemonn Markets Desk.

Nifty Bank surged 1.03 per cent to touch a record high of 57,206.70, led by gains in HDFC Bank, Axis Bank, ICICI Bank and IndusInd Bank.

The NSE companies that gained the most included Shriram Finance (3.69 per cent), Jio Financial Services (3.05 per cent), Tata Steel (2.56 per cent), Bharti Airtel (2.54 per cent) and Hindalco Industries (2.48 per cent).

Foreign Institutional Investors (FIIs) continued to pare holdings due to the narrowing yield spread between U.S. and Indian 10-year bonds. The domestic institutional investors (DIIs) emerged as net buyers, buoyed by improving liquidity conditions and a rebound in domestic consumption.

“We continue to favor rate-sensitive sectors such as banking, financials, auto, and realty, while recommending a selective approach for other segments,” said Religare Broking’s Mishra.