Markets Defy Geopolitical Jitters as Sensex Soars 650 Points, Nifty Hits 25K

Image Source: MoneyControl

Despite simmering tensions in the Middle East, Indian equity markets surged on Monday, with the Sensex jumping over 650 points and the Nifty 50 closing just above the 25,000 mark. The rally was driven by a mix of global relief, domestic policy support, and strong investor sentiment.

Key Highlights:

Global Relief Rally: A major boost came from the US delaying proposed tariffs on EU imports, calming fears of a trade war and lifting global markets. Asian indices followed suit, and India rode the wave.
RBI’s Record Dividend: The Reserve Bank of India’s ₹2.69 lakh crore dividend payout to the government added fuel to the rally. Analysts say the windfall will ease fiscal pressures and support capital spending.
Strong Bank Earnings: Betterthanexpected results from major banks like ICICI and PNB lifted the financial sector, which led the day’s gains.
Rate Cut Hopes: Softer US inflation data has raised expectations of a Federal Reserve rate cut in September, improving global risk appetite.
FPI Inflows & Technical Momentum: Foreign portfolio investors continued to pump money into Indian equities, while technical indicators suggested a bullish breakout across mid and smallcap segments.

The rally underscores how domestic fundamentals and global cues can outweigh geopolitical noise—at least for now. Investors, however, remain watchful of any escalation in the IsraelIran conflict.

Sources: LiveMint, Business Today, CNBC TV18.