Mumbai, March 5 (IANS) Indian stock markets ended sharply higher on Thursday, with benchmark indices logging their best session in over a month as easing geopolitical tensions between the United States and Iran boosted investor confidence.
The Nifty closed 1.17 per cent, or 285.40 points, higher at 24,765.90. Meanwhile, the Sensex rose 899.71 points, or 1.14 per cent, to end the day at 80,015.90.
“The market is not completely out of the woods yet, and the current move should be considered only a pullback as long as Nifty trades below the 25,200 level,” an analyst stated.
“On the downside, immediate support is placed at 24,600, and a break below this level could drag the index further towards 24,400,” a market expert mentioned.
Market sentiment improved after reports suggested that Iran may be willing to abandon its nuclear programme if the United States presents a satisfactory alternative proposal.
The development raised hopes of easing tensions in the region, which in turn lifted global risk appetite.
Among the top gainers in the Nifty were Adani Ports and Special Economic Zone, Hindalco Industries, and Larsen & Toubro, which saw strong buying during the session.
Broader markets also performed well and outpaced the benchmark indices. The Nifty Midcap 100 ended 1.52 per cent higher, while the Nifty Smallcap 100 rose 1.58 per cent.
Sectorally, metal stocks led the rally, with the Nifty Metal Index gaining 2.3 per cent. Other sectors such as oil and gas and construction-related stocks also saw strong buying interest during the day.
Experts said that the positive momentum in the market reflected improving investor sentiment amid hopes that geopolitical tensions may ease and support global financial markets.
Meanwhile, India VIX cooled off sharply, declining nearly 16 per cent to slip below the 18 mark. Any further easing in volatility is likely to remain supportive of bullish sentiment, experts stated.
–IANS
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