Nifty Rises as Market Reacts to Global Tensions and Commodity Price Changes: Top Stocks to Watch

Indian Stock Market Bounces Back Amid Global Sentiment Shift

The Nifty 50 index surged 445 points, or 2%, to close at 22,958, while the BSE Sensex rose 1,372 points, or 1.89%, to end at 74,068. The Bank Nifty index gained 1,305 points, or 2.54%, to finish at 52,743. Sectoral participation was broadly positive, with banking, auto, and financials leading the rebound.

Asian Markets Trade Higher

Asian markets, including the Japanese Nikkei, Shanghai stock market, South Korean KOSPI, and Hong Kong's Hang Seng index, traded higher, buoyed by comments from Donald Trump suggesting the possibility of negotiations between the United States and Iran. This potential for diplomatic engagement has provided some relief to global investors, raising hopes of a de-escalation in Middle East tensions.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Gold and Silver Rates Recover

Gold and silver rates snapped their nine-day losing run, gaining as much as 7% on reports that the US is pursuing a diplomatic resolution to the conflict with Iran. The COMEX gold rate jumped around 4% to $4,600 per ounce, while COMEX silver prices surged 7% to $74.42 per ounce.

US-Iran War News

The Trump administration offered a 15-point ceasefire plan to Iran, even as the US military prepared to call up at least 1,000 more troops to supplement the 50,000 already in the Mideast.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

India VIX Eases

The India VIX eased below 25, but the decline remains modest, and volatility remains elevated relative to recent trends. A meaningful drop in VIX would require stronger directional conviction in the market.

FII-DII Data

FIIs remained net sellers, offloading ₹8,009.56 crore in the cash market, while DII remained net buyers, adding ₹5,867.15 crore.

USD vs INR

The Indian rupee dropped 35 paise to 93.88 (provisional) against the US dollar on Tuesday as a strengthening greenback against major crosses and elevated global crude prices spooked investors.