Indian equity benchmarks recovered from early losses to trade nearly flat during morning trade as improving global sentiment and sustained institutional buying supported the market. The Sensex was marginally lower by 16.01 points at 77,084.46, while the Nifty 50 gained 23.40 points to trade at 24,079.40. Market breadth remained mixed, with 1,513 stocks advancing, 1,920 declining, and 202 remaining unchanged.

Investor sentiment improved following signs of de-escalation in geopolitical tensions between the United States and Iran. Diplomatic engagement between the two countries has gained momentum after recent military exchanges linked to an incident involving a cargo vessel in the Strait of Hormuz. Although both sides have accused each other of violating an interim ceasefire, hopes that the conflict will remain contained have eased concerns over crude oil prices and global financial markets.

Foreign institutional activity also provided support to domestic equities. Foreign Portfolio Investors (FPIs) were net buyers of Indian equities worth Rs 384 crore in the previous trading session, while Domestic Institutional Investors (DIIs) remained strong buyers with net purchases of Rs 5,748 crore, indicating continued confidence in Indian markets.

From a technical perspective, analysts noted that the Nifty continues to hold above the psychologically important 24,000 level. Sustaining this support could strengthen market momentum and create room for further gains in the coming sessions, provided global risk sentiment remains stable.