Relief rally lifts Sensex, Nifty on hopes of de-escalation in Iran-Israel war

Indian stock markets experienced a notable relief rally on Thursday, buoyed by rising optimism surrounding a potential de-escalation of the ongoing Iran-Israel conflict. Both the BSE Sensex and NSE Nifty indices saw significant gains, with the Sensex climbing 899 points to close at 80,015, while the Nifty rose 285 points, reaching 24,765. This rebound followed a steep decline of nearly 2.7% over the previous two trading sessions, a period marked by heightened geopolitical tensions. Analysts highlighted that the late-session surge was fueled by oversold market conditions and short-covering in the derivatives market, although they cautioned that this recovery could be temporary. The Nifty Volatility Index, a key measure of market anxiety, fell by 15.5%, indicating a cooling of investor fears. Broader market indices also performed well, with Nifty Midcap and Smallcap indices gaining 1.5% and 1.4%, respectively. Despite the positive momentum, experts remain wary of the market's near-term outlook, advising investors to remain cautious as the potential for continued volatility looms. They noted that key resistance levels should be monitored closely, as any failure to maintain these levels could lead to further downtrends.