New Delhi, Aug. 5 -- India's stock market has witnessed broader participation over the past four months, with more stocks gaining than losing each month, signalling improving risk appetite after it was jolted by the US-Iran war, analysts said.

For four consecutive months through July, advancing stocks comfortably outnumbered decliners, keeping the market's advance-to-decline ratio above 1 and signalling a recovery in sentiment after the initial shock from the West Asia war in late February, as investors adjusted to the conflict's prolonged uncertainty.

The ratio, a key gauge of market breadth, measures overall market participation by comparing the number of stocks gaining against the ones losing. When it stays above 1 for an extended st...