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Domestic equity benchmark indices witnessed a strong rebound on Friday, surging nearly 1.5 per cent each, as global risk sentiment improved sharply following signals of a possible breakthrough in tensions between the United States and Iran.
The rally came after US President Donald Trump indicated that Washington and Tehran could finalise a peace agreement as early as this weekend. The optimism was further reinforced by statements from Iranian officials suggesting progress in diplomatic engagement, raising hopes of a de-escalation in the prolonged conflict and easing concerns over disruptions to global energy supplies. Investor sentiment received a significant boost as prospects of a truce triggered a sharp decline in crude oil prices. Brent crude futures fell around 4 per cent to trade below USD 87 per barrel, while WTI crude slipped more than 4 per cent to around USD 83 per barrel. Lower oil prices are viewed positively for India, one of the world's largest crude importers, as they help reduce inflationary pressures and improve the country's fiscal outlook. Reflecting the positive sentiment, the Sensex gained more than 1,695 points during the session to touch an intraday high of 75,608.02, while the Nifty crossed the crucial 23,600 mark. The sharp rally helped erase losses recorded in the previous session and added more than Rs 7 lakh crore to the market capitalisation of BSE-listed companies, taking the overall valuation close to Rs 460 lakh crore. Sensex ended at 75,527.95, up 1695.40 points or 2.30 per cent while Nifty closed at 23,622.90 up 461.30 points or 1.99 per cent. Global markets also rallied strongly amid the easing geopolitical concerns. Gift Nifty traded about 1.5 per cent higher in early trade, while Asian peers posted robust gains, with South Korea's market surging nearly 8 per cent and Japan's Nikkei opening sharply higher. Buying interest remained broad-based across sectors, with all 30 Sensex constituents ending in positive territory. Nifty Realty and Nifty Financial Services Ex-Bank emerged as the top sectoral gainers, advancing over 3 per cent each. Among individual stocks, Tata Steel, IndiGo, Larsen & Toubro, Eternal, State Bank of India and Tech Mahindra gained up to 3 per cent. The broader market also participated in the rally, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising nearly 2 per cent each, indicating strong investor participation across segments. Market analyst Vipin Dixena said the rally was primarily driven by improving global risk appetite, "Indian equities staged a powerful relief rally today, with benchmark indices surging more than 1 per cent. The primary driver of the surge was improved global risk sentiment following signs of easing tensions between the United States and Iran, which led to a sharp decline in crude oil prices." He noted that banking and financial stocks were among the biggest contributors to the gains, supported by recent liquidity-enhancing measures announced by the Reserve Bank of India. "Infrastructure, capital goods, oil marketing, aviation, cement, and realty stocks also witnessed strong buying interest. The rally was broad-based, with large-cap, mid-cap, and small-cap stocks participating, indicating improved market breadth and investor confidence. From a technical perspective, Nifty's move above 23,500 has strengthened near-term sentiment." Dixena said. He added, overall the market closed the week on a positive note, with sentiment turning cautiously bullish after recent volatility. (ANI)
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