Foreign institutional investors turned net buyers with cash market inflows of over Rs 3,421 crore in the first week of July, even as analysts warned that geopolitical risks and India-US trade developments could keep markets volatile.
The development comes after the US launched overnight airstrikes on Iran in response to Tehran's alleged attacks on three vessels in the Strait of Hormuz.
Stock markets on Thursday extended their winning streak but shed gains posted during the day aided by easing crude oil prices and buying in select stocks.
Indian markets opened sharply higher as investors welcomed easing tensions in West Asia, lower crude oil prices and reports of a breakthrough between the United States and Iran.
Indian stock markets on Friday ended with strong buying as the Nifty climbed above the 23,600 mark and the Sensex gained over 1,600 points. The market's gains were aided by easing crude oil prices, a stronger rupee and positive global cues.
The Indian stock market ended in the red on Tuesday, with the Nifty falling below the 23,900-mark and the Sensex dropping nearly 500 points.
The Indian Stock Market on Monday rallied sharply supported by a steep fall in crude oil prices.
The Indian equity markets posted mild gains early on Friday tracking positive global cues, over optimism regarding US-Iran peace negotiations.
The recent Gulf War has unsettled global energy markets, disrupted shipping routes, and shaken investor confidence.
Indian stock markets staged a sharp recovery to close in the green after falling as much as 1.3 per cent on an intraday basis.
