In a remarkable turnaround, the Indian stock market witnessed a resurgence as both the Sensex and the Nifty 50 indices ended Friday's trading session on a positive note, breaking a four-day streak of losses. This rebound comes amidst a backdrop of eased tensions in the Middle East, sparking renewed optimism among investors.

The 30-share BSE Sensex surged by 599.34 points, marking an increase of 0.83%, closing at 73,088.33 levels, while the Nifty 50 climbed 151.15 points or 0.69%, concluding at 22,147.00 levels. Despite the overall positive performance, the broader market exhibited mixed results, with the Nifty Small Cap 100 edging up by 0.10% and the Nifty Midcap 100 closing 0.61% higher.

Driving this remarkable comeback were larger-cap stocks, which propelled the Indian markets despite prevailing global weaknesses. The optimism stemmed from expectations of limited escalation following Israel's recent strikes against Iran. However, concerns regarding rising oil prices and their potential impact on inflation linger, prompting investors to seek refuge in safe-haven assets like gold. Additionally, muted expectations for Q4 earnings weighed on sentiment, particularly impacting mid- and small-cap stocks.

The ripple effects of Middle East tensions were felt across global markets, with Asian equities experiencing notable downturns. Japan's Nikkei 225 plummeted by 3.51% to 36,742.05, while Australia's S&P/ASX 200 dipped by 1.7% to 7,512.70 levels. South Korea's Kospi fell by 2.9% to 2,558.56, and Hong Kong's Hang Seng declined by 1.4% to 16,161.24. Similarly, China's Shanghai Composite saw a slight drop of 0.1% to 3,071.76.

Early reports of Iran's air defense response to incidents near Isfahan added to the global unease, leading to a sudden spike in oil prices by approximately USD 3. This development further underscored the delicate balance of geopolitical tensions and their impact on global markets.

In conclusion, the Indian stock market's rebound amidst global uncertainties highlights the resilience of investors amid evolving geopolitical dynamics. While larger-cap stocks spearheaded the recovery, ongoing concerns regarding oil prices and earnings expectations warrant cautious optimism as markets navigate through this period of volatility.

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