Mumbai, June 28
The Indian stock markets finally ended their five-week-long consolidation phase, driven by improving global sentiment, easing geopolitical concerns, and noticeable buying by foreign institutional investors (FIIs) in the latter part of the week, analysts said on Saturday.
After a cautious start, indices gained traction midweek as tensions between Iran and Israel appeared to ease, and global risk appetite returned.
Consequently, the benchmark indices Nifty and Sensex closed near their weekly highs at 25,637.80 and 84,058.90, respectively.
“The rally was underpinned by a combination of easing Middle East tensions and a strong rebound in FII inflows. The fragile truce between Iran and Israel held throughout the week, calming geopolitical nerves and boosting investor confidence,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
On the domestic front, progress in the monsoon, subdued crude oil prices, and stable macroeconomic indicators supported the bullish undertone. FII inflows accelerated, with over Rs 12,000 crore infused in a single day, further strengthening market sentiment, he mentioned.
On Friday, benchmark indices touching a nine-month high. The Sensex climbed 303.03 points, or 0.36 per cent, to close at 84,058.90. It traded within a range of 83,645.41 to 84,089.35 during the day.
This suggests that investors are feeling more confident about market stability in the near term.