Indian Stock Market Recovers: Sensex Gains Over 250 Points, Nifty Above 23,250 Amidst Global Tensions

Sensex Today | Nifty 50 | Stock Market Live Updates: The Indian stock market recovered to trade positive on Thursday after initially slipping into the red. Earlier, Sensex and Nifty had fallen up to 0.6% each as renewed tensions in the Middle East and concerns over the closure of the Strait of Hormuz pushed oil prices higher and weighed on investor sentiment.

Global markets remain finely balanced between strong optimism around AI-led growth and rising risks from oil shocks linked to US-Iran tensions. While AI investments have lifted equities, global trade, and economic forecasts, increasing correlation across assets has made markets more vulnerable to sudden shifts. A prolonged spike in oil prices could fuel inflation, revive rate hike expectations, and trigger stagflation concerns.

Investors are responding by hedging portfolios through inflation-linked bonds and volatility derivatives while trimming exposure to government debt. Although some expect geopolitical shocks to fade and markets to rebound, sustained energy disruptions and tighter policy could undermine the ongoing tech-driven rally and increase market volatility. Read more

- V K Vijayakumar, Chief Investment Strategist, Geojit Investments