Markets take U-turn on hopes of localized Israel-Hamas war
MUMBAI : Indian stock markets took cues from global stock markets to recoup all their losses of the previous day, as hopes of the Israel-Hamas war remaining confined to the Gaza strip caused a softening in crude prices, which was reinforced by Israel’s TA 35 Index trading up 0.9% at 1745 at the time of writing. Dovish comments by a senior Federal Reserve official also boosted sentiment. While FIIs remained sellers of a provisional ₹1,005.49 crore, DIIs purchased shares worth ₹1,963 crore.
The Nifty gained nine-tenths of a percent, the most in over a month, to close at 19,689.85, while the Sensex posted the highest gain in over three months, rising 0.87% to 66,079.36 on Tuesday. The broader market outperformed with the Nifty Midcap 150 and the Nifty Smallcap 250 indices rising over a percent each. Nifty Realty was at a multi-year high of 606.2.
However, despite the market recovery, volatility index Vix fell just 1.4%, suggesting the near term risks persist. Adani Enterprises, Adani Ports, Hindalco, Bharati Airtel and Coal India were the top Nifty gainers, rising 2.30-5.37%. Adani Ports rose 3.7% after brokerage Motilal Oswal initiated coverage with a target of ₹1,010, and CLSA also maintained a buy with a target of ₹789.90.
Brent crude traded down 35 cents at $89.54 a barrel, down from the high of $90.88 the previous day, on rising expectations of the conflict not spreading outside Gaza. The rupee gained a marginal two paise to close at 83.25/USD while the benchmark 10-year bond yield fell 3 basis points to close at 7.35%. Comments by Federal Reserve vice chair Philip Jefferson implying that the Fed’s rate setting committee would proceed cautiously while firming policy aided the global stock market rally with the Nikkei
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