Indian equity markets surged 1.2 per cent as crude oil prices softened amid easing US-Iran tensions. At 9.30 am, the benchmark Sensex was 1.2 per cent or 491 points higher at 41311 points, while Nifty gained 1.09 per cent or 130 points to 12166.55 points. US equity indices saw huge swings overnight as Dow Jones climbed over 250 points before closing 160 points higher. S&P 500 & Nasdaq hit record all-time highs. Asian equities also opened in the green on easing geopolitical tensions. Iran offered no immediate signal it would retaliate further over a 3 January US strike that killed one of its senior military commanders. Fall in oil prices bodes well for emerging market assets such as Asian stocks.
According to IIFL Securities, the huge recovery in global markets will boost local bourses with mid-cap stocks likely to lead the rally. Market sentiment has been weak in the last few sessions due to a spike in oil prices amid escalating tensions in West Asia. Also, the Investors will focus on the earnings season which starts from Friday with Infosys declaring its results.
Read EquityPandit’s Nifty Outlook for the Week