Dalal Street takes cues from Don, sensex up 640 points Indian stock markets rebounded on Tuesday as traders interpreted statements by US President Donald Trump as a potential signal that tensions in West Asia could ease, leading to a recovery in regional supply chains. The benchmark S&P BSE Sensex surged 640 points, or 0.8%, to close at 78,206, while the Nifty 50 index gained 234 points, or 1%, to finish at 24,262. The rally followed Trump’s remarks during a press conference, where he suggested a resolution to the ongoing turmoil in the region might be imminent, prompting optimism among investors. Asian markets, including India’s, mirrored the positive sentiment, with traders closely following developments in the US and global markets. European and US indices also showed gains, with US markets reversing early losses after Trump’s comments. The improved outlook for regional stability and trade flows appeared to lift investor confidence, particularly in sectors reliant on global supply chains. Despite the rally, market participants noted that elevated levels of the India VIX, a measure of equity market volatility, continued to reflect underlying uncertainty. Analysts suggested that investors remained cautious, with the market likely to stay volatile until clearer signals of geopolitical de-escalation emerge. “Greater clarity could trigger value buying in sectors most affected by recent volatility,” said Nair, a market commentator. Foreign institutional investors were net sellers on Tuesday, withdrawing Rs 4,673 crore from the market, according to BSE data. However, the day’s rally added nearly Rs 6 lakh crore to investors’ portfolios, with the BSE’s market capitalisation rising to over Rs 447 crore. Among the 30 Sensex constituents, 24 closed higher, with banking and industrial firms leading the gains.#nifty_50 #us_president_donald_trump #icici_bank #s_p_bse_sensex #hdfc_bank
