By Admin 
The Indian stock market started slowly on Monday, but the trust of investors returned and the market made tremendous recovery. Sensex rose by 677 points (0.84 per cent) and closed at 81,796. At the same time, NIFTY 50 jumped 227.90 points (0.90 percent) and touched a level of 24,946.50. Midcap and smallcap stocks also saw a rise of 1 percent.
Why did the market climb despite Iran-Israel tension?
While there is tension in West Asia, the Indian market showed a positive mood bypassing that fear. According to experts, there have been many important reasons behind this boom, including political signals to technical support.
Trump’s initiative expectations of reconciliation
US President Donald Trump said on his social media platform Truth Social that Iran and Israel should find a way out of the conversation. He also claimed that as he created an atmosphere of talks between India and Pakistan, it is also possible here. This sign assured global investors that perhaps the struggle could be prevented from dialogue, which strengthened the market notion.
Impact of short covering after recent decline
The market had reached oversold situation due to a decline in the last few trading sessions. In such a situation, many investors did short covering, that is, by taking back the bets taken on the decline. This caused a sudden bounce in the demand and the major index climbed up. Experts believe that in such an indefinite time long -term investors buy stocks on better value, which supports the market.
Crude oil prices stability
Although Brent crude was seen to have a sharp jump on Friday, prices remained below $ 80 per barrel on Monday. This gave investors confident that there would not be a lot of cost pressure on import-dependent economy like India. The possibility of negative effects on corporate profit margins also decreases due to oil prices being stable.
India’s strong economic picture became support
Decreased inflation in the country and better monsoon expectations than normal seem to strengthen the Indian economy. The World Bank has estimated India’s GDP growth to be 6.3 per cent in FY26, 6.5 per cent in FY27 and 6.7 per cent in FY28. These figures have strengthened the trust of investors in terms of medium and long -term in the market.
Technical signs are also positive
On Monday, Nifty 50 touched the 24,950 level, which was considered an important technical level. According to analysts, if the Nifty remains above 24,750, the market can also go above 25,000. Axis Securities said in its analysis that if the Nifty trades above 24,649, it can also go up to 25,106.
Danger not averted yet
Although the market has performed strongly today, geopolitical conditions still remain sensitive. Investors will have to maintain vigilance, as any unexpected incident internationally can affect the market. Currently, there is confidence in the market, but only every step taken carefully can provide stability to investors.
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