Domestic equity indices rose around 0.8 percent on Tuesday’s opening, taking cues from other Asian markets, which remained cautiously optimistic about United States President Donald Trump’s announcement of halting attacks on Iran’s energy infrastructure.
On the other hand, precious metals like gold and silver again declined on Tuesday. While Sensex was trading 520 points higher with a gain of around 0.7 percent, the Nifty was above 22,660.
With renewed hopes of a truce between the warring sides, both indices opened higher after posting a loss of around 2.5 percent during the previous trading session.
On Tuesday, Sensex opened at 74,212.47 points, which is 2 percent higher than its previous close of 72,696.39 points. Nifty opened higher at 22,878.45 points compared to its previous close of 22,512 points.
The measured gains in the markets were in line with global markets, which were up by as much as 2 percent after Trump termed the talks with Iran “well-intentioned”. However, Iran denied any talks with the US.
Broader indices were trading down by 2–5 percent.
Nifty Midcap and Nifty Smallcap were around 0.6 percent and 0.3 percent higher, respectively, while Nifty Financial Services and Nifty Bank were higher by around 0.75 percent and 0.9 percent, respectively.
On the other hand, the bullion market again traded in the red, with spot gold prices declining over 7 percent to Rs 1,35,800 per 10 grams of 24-carat purity. Spot silver also dropped over 9 percent to Rs 2,09,700 per kg.
According to experts, persistently high interest rates and a strong dollar could weigh on metals for some time to come. However, this could be a good buying opportunity for long-term investors.
After threatening attacks on Iran’s energy infrastructure, Trump on Monday said that he had “well-intentioned” discussions with the Iranian side and announced a halt to the planned attacks for five days.
