The Indian equity market recovered after a flat opening on the first trading day of July, with benchmark indices gaining momentum later in the session as buying activity increased following an initially cautious start.
Early trade remained range-bound amid uncertainty surrounding talks in Doha related to a peace agreement between the United States and Iran, keeping the BSE Sensex and NSE Nifty 50 under pressure during the opening session.
During intraday trade, the Sensex rose about 263 points to 76,742.50, while the Nifty 50 gained nearly 82 points to trade at 23,947.90. Despite initial volatility, buying in select sectors supported the market, allowing both benchmark indices to remain in positive territory.
Global economic and geopolitical developments continued to influence market sentiment. Investors remained cautious over diplomatic discussions between the United States and Iran, with any positive or negative international developments expected to impact global financial markets as well as Indian equities.
Analysts said investors are awaiting global cues and economic data before taking significant investment decisions. As a result, the market traded within a narrow range during the initial session before domestic buying provided support.
Most Asian equity markets traded higher on Wednesday, supporting sentiment in Indian equities. Japan's Nikkei 225 advanced about 1.79%, while the Topix Index gained 1.07%. South Korea's Kospi Index rose approximately 1.52%, although the small- and mid-cap focused Kosdaq Index registered a marginal decline.
Hong Kong's Hang Seng Index futures also traded above the previous closing level, indicating positive sentiment across Asian markets.
US equity markets ended the previous trading session higher, supported by buying in technology stocks. The Dow Jones Industrial Average gained about 136 points, while the S&P 500 and Nasdaq Composite also closed in positive territory.
Ahead of the new trading session, however, US futures indicated limited weakness. Dow Jones futures edged lower, while S&P 500 and Nasdaq 100 futures remained largely unchanged, reflecting investor caution ahead of key economic developments and policy signals.
