Sensex jumps over 500 pts despite West Asia tensions; Reliance, HUL lead early gains
India’s benchmark indices, Sensex and Nifty 50, rose over 500 and 140 points respectively in early trade on Wednesday despite escalating geopolitical tensions in West Asia, with Reliance Industries, HUL, and Nestle leading gains. Oil prices climbed amid regional uncertainty, while the rupee weakened to 95.56 against the US dollar, and foreign institutional investors continued selling Indian stocks despite AI-driven global market fatigue." "article": "India’s benchmark equity indices opened flat but surged in early trade on Wednesday, with the Sensex climbing 513 points to 74,426.14 and the Nifty 50 gaining 133 points to 23,375.20 by 9:55 AM. The rally came despite renewed geopolitical tensions in West Asia, including US strikes against Iran after Tehran allegedly downed a US Apache helicopter in the Strait of Hormuz, which clouded global investor sentiment. Oil prices rose amid the uncertainty, posing a risk to India, the world’s third-largest oil importer, as higher crude could strain economic growth, corporate margins, and inflation. The Indian rupee depreciated to 95.56 against the US dollar in early trading, reflecting market caution. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that while global markets remain wary of concentration risks in AI-driven trades—particularly in South Korea and Taiwan—Indian stocks have yet to reflect valuation appeal for foreign investors. Sectoral performance was mixed, with FMCG stocks leading gains over 1%, followed by chemicals and banking sectors, while metal stocks lagged. Banking shares remained in focus after the Reserve Bank of India’s recent liquidity measures, and IT stocks saw renewed interest amid easing H-1B visa concerns. Among top gainers in the Nifty 50, HUL rose 2.36%, Nestle India advanced 1.72%, and Reliance Industries climbed 1.62%, while Hindalco Industries dropped 3.77% and Adani Enterprises fell 1.14%. Midcap and smallcap indices traded lower, and broader Asian markets declined 1.3% as investors awaited key US inflation data for cues on interest rate policy. Vijayakumar highlighted that sustained foreign portfolio investor (FPI) selling in India has widened valuation gaps between large-cap and broader market stocks, though he expects a shift when FPIs return as buyers. Around 2,728 stocks were traded on the NSE by 9:30 AM, with 1,423 advancing and 1,205 declining.
India’s benchmark equity indices opened flat but surged in early trade on Wednesday, with the Sensex climbing 513 points to 74,426.14 and the Nifty 50 gaining 133 points to 23,375.20 by 9:55 AM. The rally came despite renewed geopolitical tensions in West Asia, including US strikes against Iran after Tehran allegedly downed a US Apache helicopter in the Strait of Hormuz, which clouded global investor sentiment. Oil prices rose amid the uncertainty, posing a risk to India, the world’s third-largest oil importer, as higher crude could strain economic growth, corporate margins, and inflation. The Indian rupee depreciated to 95.56 against the US dollar in early trading, reflecting market caution. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that while global markets remain wary of concentration risks in AI-driven trades—particularly in South Korea and Taiwan—Indian stocks have yet to reflect valuation appeal for foreign investors. Sectoral performance was mixed, with FMCG stocks leading gains over 1%, followed by chemicals and banking sectors, while metal stocks lagged. Banking shares remained in focus after the Reserve Bank of India’s recent liquidity measures, and IT stocks saw renewed interest amid easing H-1B visa concerns. Among top gainers in the Nifty 50, HUL rose 2.36%, Nestle India advanced 1.72%, and Reliance Industries climbed 1.62%, while Hindalco Industries dropped 3.77% and Adani Enterprises fell 1.14%. Midcap and smallcap indices traded lower, and broader Asian markets declined 1.3% as investors awaited key US inflation data for cues on interest rate policy. Vijayakumar highlighted that sustained foreign portfolio investor (FPI) selling in India has widened valuation gaps between large-cap and broader market stocks, though he expects a shift when FPIs return as buyers. Around 2,728 stocks were traded on the NSE by 9:30 AM, with 1,423 advancing and 1,205 declining.
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