Indian stock market witnessed significant gains on June 16, with the Sensex and Nifty 50 rising nearly 1% despite ongoing Israel-Iran tensions. Key heavyweights like HDFC Bank and Infosys contributed to the rally, driven by hopes of a potential truce mediated by Donald Trump.
Starting the session on a subdued note, the frontline indices experienced a remarkable recovery throughout the day. A surge in buying activity across various sectors, including autos, pharma, and FMCG, helped the Sensex and Nifty 50 break their two-day losing streak.
The Sensex opened at 81,034.45 and surged over 700 points to an intraday high of 81,865.82, while the Nifty 50 started at 24,732.35 and reached an intraday high of 24,966.65.
The BSE Midcap and Smallcap indices also saw gains of about half a percent each.
Factors Driving the Indian Stock Market Rally:
- Hopes of a Truce: Experts point to signals from US President Donald Trump indicating a potential easing of tensions between Israel and Iran.
- Short Covering: Investors engaged in short covering following recent market selloffs, taking advantage of more attractive valuations.
- Stable Oil Prices: Crude oil prices remaining steady after a recent spike have positively influenced market sentiment.
- Positive Macroeconomic Outlook: India's favorable macroeconomic conditions, including easing inflation and expectations of a good monsoon, have kept market prospects optimistic.
- Technical Factors: The Nifty 50 reclaiming the 24,950 level during the session has also contributed to the positive momentum.
Analysts suggest that if the Nifty continues to trade above key levels, further upside potential could be expected in the near term.
Source: Mint
