Sensex Surges 700 Points Amid West Asia Tensions
The Indian stock market opened sharply higher on Wednesday, defying mixed global cues and renewed geopolitical tensions in West Asia. The BSE Sensex surged about 700 points to open above 77,450, while the NSE Nifty50 climbed close to 200 points and traded over 24,150. This rally comes despite oil prices surging due to heightened geopolitical concerns in the region.
Market analysts believe that investors are awaiting a decisive breakout before taking fresh positions. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the broader market structure remains neutral, suggesting indecisiveness and volatility during the monthly July derivatives expiry.
The US Federal Reserve's interest rate decision is expected to closely monitor by investors today, alongside developments in West Asia and movement in commodity prices. The Dow Jones Industrial Average gained 1.03 per cent on Tuesday, while the S&P 500 added 0.21 per cent. Brent crude's July futures climbed 4.32 per cent to $87.72 per barrel in early trade.
Market experts see a range-bound trade until a breakout occurs. Chouhan suggested that a sustained move above the 24,050 level on the Nifty could attract fresh buying and potentially lift the index towards the 24,150-24,200 zone.