Livemint : Jan 07, 2020, 12:41 PM
Indian markets rebounded today amid broad advances in global markets as fears of a Middle East conflict abated for now, though investors remained on alert for any escalation after the US assassination of a top Iranian general. The Sensex rose over 500 points to 41,204 while Nifty regained 12,150. Among the Sensex 30 stocks, IndusInd Bank, Bajaj Finance, UltraTech Cement, HDFC Bank, Tata Steel, Asian Paints, RIL, Axis Bank, HDFC and ICICI Bank were up between 1.5% and 2.5%.Indian markets had seen a steep decline over previous two session as tensions flared up between US and Iran, which had led to a spike in crude prices."On pullback moves, 12,120 and 12,200 will be the immediate resistances. On the flipside, the near term support is placed in the range of 11,850-11,800. Traders are advised to stay light on positions till the volatility settles down," said Ruchit Jain, equity technical analyst at Angel Broking.HDFC Securities remains cautious. "The worries for the markets, however, are far from over. Iran is a developing story which needs to be followed closely," the brokerage said in a note.The India VIX index, which is commonly referred to as fear gauge, today spiked 9%, indicating that investors still remained nervous.Asian markets were broadly higher today while safe havens such as oil and gold retreated.With few major developments in the crisis fuelled by the killing of Qasem Soleimani last week, traders were able to turn their attention back to the global economic outlook and the China-US trade deal signing planned for January 15.Overnight, the Wall Street provided a positive lead, with all three main indexes reversing early losses to end in the green as traders welcomed strong service sector data from the US, Europe and Britain that provided hope that the worldwide growth slowdown was easing.