Value buying was seen in key sectors including auto, metal and realty at the start of the day. At around 10:30 am, the Sensex was up 500.05 points or 0.66 percent at 76,002.91, while the broader Nifty was at 23,571.75, up 164.80 points or 0.7 percent.
Further, GIFT Nifty suggested a positive start, indicating that investors may attempt to build on the momentum. However, the bigger question is whether this recovery can hold in the face of persistent geopolitical risks.
The ongoing tensions in West Asia, particularly around the Strait of Hormuz, remain a key overhang. Any further disruption in oil supply routes could keep crude prices elevated, directly impacting inflation expectations and corporate margins in India.
Global Markets Optimistic
Global cues are offering mixed signals. While Wall Street’s rebound – driven by renewed interest in AI stocks – has improved risk appetite, the sustainability of that rally is still uncertain.
Asian markets are also tracking global optimism, but remain sensitive to developments in energy markets and geopolitical headlines. Tokyo’s Nikkei, and the Kospi in South Korea showed positive momentum.
Going forward, investors are likely to stay cautious, with volatility expected to remain high. Sectoral action may dominate, especially in oil-sensitive industries, IT, and banking. Much will depend on how crude prices behave and whether geopolitical tensions ease or escalate further.
In the near term, markets could see range-bound movement with a positive bias, but sharp swings are likely as traders react to global triggers and evolving risk factors.