Business

Market Rally Amid Geopolitical Tensions and Easing Volatility

Thursday, July 9, 2026
5 min read
Market Rally Amid Geopolitical Tensions and Easing Volatility

Things were moving fast on Thursday. Despite the oil prices climbing and that whole Iran-US mess heating up missiles flying around, the Strait of Hormuz getting shut down, contracts cancelled India’s main market indices actually managed a rally. They jumped over 650 points overall, after dipping just two percent the day before.

The value buying seemed to really matter here. Plus, the VIX eased up, and foreign money was still pumping in. That combination sort of shifted the mood around sentiment.

BSE Sensex took off in the morning session, climbing over 530 points that’s like a 0.68 percent gain. It traded above 77,000. Nifty 50 followed suit, ticking up 156 points, hitting over 24,029.

But it wasn't just the big names doing well. The broader market was actually outperforming those benchmarks. Nifty Midcap 100 surged to 62,010. A solid 1.12 percent gain there. And the Smallcap 100? That one zoomed, up 1.48 percent, landing at 19,061.

Sector-wise, Bank and FMCG were the clear winners. They led the charge with gains over 1.14 percent and 1 percent respectively. Everything else was a bit quieter.

The IT stocks, though they lagged behind. Nifty IT index actually fell two percent during the day. It seemed to absorb some of the geopolitical noise.

Meanwhile, looking at fear itself: the India Volatility Index, or VIX, tanked hard. It dropped 8.95 percent, landing at 13.37. That shows how nervous things were, even with the market moving up.

There’s a feeling that this whole period of consolidation and correction over the last year and a half has actually made some quality stocks look cheap now. Investors are starting to see an opening. They're looking to grab those solid names at valuations that feel right after all that recent shakeup. Hoarding quality, that seems to be the new play.

Some folks were trying to calm the panic about oil. VK Vijayakumar, Chief Investment Strategist over at Geojit Investments Limited, put some perspective there. He said, "There are market indications that things may not deteriorate as feared."

He pushed back on the idea of an immediate crisis. Brent crude hitting $80? Not a disaster. It won’t trigger a balance of payments crisis right away. The real trouble only comes if those tensions lead to another shutdown of the Strait of Hormuz and prices spike above $100. Right now, futures aren't reflecting that kind of doom scenario. September crude is sitting at $76. The market isn't fully buying into the idea that things are going to get much worse globally. Globally, markets haven’t completely panicked either.

And you have to look at the money flow. Foreign Institutional Investors the FIIs stayed net buyers for the fourth session in a row on Wednesday. That was despite all the escalating tension happening in the Middle East. They actually bought shares worth Rs 1,963 crore during that trading time.

Domestic players also stepped up. Domestic Institutional Investors, or DIIs, came back as net buyers too after taking a one-day pause. They put Rs 790 crore into equities. That provided some extra support for the broader market. It’s all moving around, isn't it?

Written by Gree News Team — Senior Editorial Board

Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.

#sensational#business#global#trending

More from Business

View All

Latest Headlines