Global Markets Rally Amid Easing Tensions Over Iran Conflict

Indian Markets and Asian Peers Rebound Sharply

Market Recap

On Tuesday, Indian markets and their Asian peers rebounded sharply, recouping much of their losses from a day earlier. The Nifty 50 rose 1.78% to close at 22,912.40, while the Sensex 30 rose 1.89% to close at 74,068.45, raising the BSE's market capitalization by ₹7.56 trillion.

Asian Benchmarks

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Key Asian benchmarks traded in line with India's bourses, with Japan's Nikkei 225 index closing 1.4% higher, Hong Kong's Hang Seng index rising 2.8%, South Korea's Kospi index up 2.7%, and China's CSI 300 index at 1.3%.

Technical Analysis

The Nifty 50 breached the 22,735 technical resistance level, signaling near-term strength. Analysts predict that the market may test the next resistance level of 23,512 by month-end, provided no negative news emerges.

Broader Market Performance

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Broader Indian indices also performed well, with the Nifty Midcap index closing 2.6% higher and the Nifty Smallcap at 2.4%. Lower crude prices may have contributed to the relatively stable markets, with Brent crude trading below $100 per barrel at $98.15.

Commodity Prices

MCX gold price surged 2.19% on Tuesday, while the rupee appreciated by 10 paise to 93.88. Foreign Institutional Investors (FIIs) net sold ₹8,009 crore of shares, while Domestic Institutional Investors (DIIs) net bought ₹5,867 crore of equities.

Earnings Impact

Near-term earnings visibility for manufacturing companies has been impacted to some extent, but most firms have limited direct exposure to the Middle East and are adapting to supply disruptions. Analysts predict that earnings impact is likely confined to March-April, with normalisation expected from May-June.