MUMBAI — Indian stock markets extended their rally for a third consecutive session Tuesday, buoyed by improving investor sentiment amid expectations that the United States and Iran could prolong their ceasefire during upcoming diplomatic talks.
The benchmark Sensex rose 753.03 points, or 0.96 percent, to close at 79,273.33, while the Nifty 50 gained 211.75 points, or 0.87 percent, to end at 24,576.60.
Gains were driven by buying in select heavyweight stocks and optimism that easing geopolitical tensions in West Asia could support global market stability.
Analysts said the Nifty is approaching a key resistance level around 24,600, where some selling pressure has emerged.
“A decisive breakout and sustained move above this level could open further upside toward 24,850, followed by the key psychological level of 25,000, where stronger supply is expected,” one analyst said.
On the downside, the 24,350–24,400 range is now seen as immediate support after previously acting as resistance.
Among the top performers on the Nifty were Nestle India, Trent, and Hindustan Unilever, helping lift the broader index.
The rally also extended to broader markets, with the Nifty MidCap index rising 0.49 percent and the Nifty SmallCap index gaining 0.88 percent.
Sector-wise, the FMCG and realty indices led gains on strong buying interest, while the pharma sector lagged behind and emerged as the day’s weakest performer.
Investor sentiment remained cautiously optimistic ahead of expected talks involving U.S. and Iranian officials, along with U.S. Vice President JD Vance, aimed at reaching a broader agreement to reduce hostilities in the region.
However, uncertainty continues to loom. Iran’s Parliament Speaker Mohammad Bagher Ghalibaf said Tehran does not support negotiations under threats and signaled readiness to respond forcefully if necessary.
Earlier, U.S. President Donald Trump warned that failure to reach an agreement before the ceasefire deadline could lead to renewed military escalation.
“A lot of bombs” could go off if talks collapse, he said.
Despite lingering risks, analysts expect Indian equities to maintain a gradual upward trend, supported by improving macroeconomic conditions, easing crude oil prices, and strong fourth-quarter earnings momentum. (Source: IANS)
