Stock markets climbed in early trade on Tuesday after US President Donald Trump halted strikes on Iran and hinted at a possible deal. Buying in frontline IT stocks, Adani group firms, and foreign fund inflows also added to the positive trend in equities.
Market Performance
The BSE Sensex surged over 300 points in early trading, while the Nifty50 crossed the 12,000 mark. Broader indices also traded higher, with midcap and smallcap stocks gaining ground.
Key Drivers
Investor sentiment improved after Trump’s decision to de-escalate tensions with Iran. The US president indicated that negotiations were underway, raising hopes of a diplomatic resolution. Additionally, buying in technology stocks, particularly Infosys and TCS, supported the rally. Adani group stocks also saw strong demand, with Adani Ports and Adani Green Energy rising sharply.
Foreign Fund Inflows
Foreign portfolio investors (FPIs) continued to pour money into Indian equities, adding to the positive momentum. Data showed that FPIs have bought over $1 billion worth of stocks in the past week, driven by optimism over global trade and economic recovery.
Outlook
Analysts expect the market to remain volatile in the near term, with geopolitical developments and corporate earnings in focus. However, the easing of tensions between the US and Iran is seen as a positive catalyst for risk assets.
