Indian stock markets opened higher on Wednesday, with the Sensex rising 0.5% and the Nifty gaining 0.4%, buoyed by optimism around a potential Iran nuclear deal and positive global market cues. Analysts attribute the uptick to reduced geopolitical risks and strong performances in Asian and U.S. markets.
Market participants are closely watching developments in Vienna, where negotiations to revive the 2015 Iran nuclear deal have shown progress. A successful deal could ease oil supply concerns, benefiting energy-importing economies like India. “Any resolution to the Iran standoff would be positive for emerging markets,” said a Mumbai-based analyst speaking on condition of anonymity.
The gains follow a rally in U.S. markets, where the S&P 500 and Dow Jones Industrial Average closed higher on Tuesday. Asian markets also opened strong, with Japan’s Nikkei up 1.2% and Hong Kong’s Hang Seng gaining 0.8%.
However, some caution remains. “While the short-term sentiment is positive, we’re still seeing volatility due to inflation concerns and upcoming Fed decisions,” noted a senior economist at a leading brokerage firm. Investors are advised to monitor crude oil prices and currency fluctuations for further direction.