Indian benchmark indices Sensex and Nifty surged in early trade, buoyed by a significant drop in crude oil prices amid reports of a potential 60-day ceasefire extension between the US and Iran, alongside a positive global market sentiment.
Sensex and Nifty50 Performance: Key Market Highlights Today
- Benchmark indices Sensex and Nifty recorded gains in early trade, with Sensex climbing 352.22 points and Nifty rising 95.65 points.
- The surge was primarily attributed to a decline in Brent crude oil prices, which fell over 1 per cent to USD 92.66 per barrel.
- Reports of an understanding between the US and Iran to extend a ceasefire for 60 days fuelled expectations of further crude price drops, positively impacting India's economic outlook.
- Buying interest was observed in IT stocks, with Infosys, HCL Tech, and Tata Consultancy Services among the top gainers.
- Positive trends in Asian and US markets also contributed to the optimistic sentiment in Indian equities.
Benchmark indices Sensex and Nifty climbed in early trade on Friday following a decline in crude oil prices on reports that the US and Iran reached an understanding to extend the ceasefire for another 60 days.
Buying in IT stocks and a positive trend in global markets also added to the optimism.
The 30-share BSE Sensex climbed 352.22 points to 76,220.02 in early trade.
The 50-share NSE Nifty went up by 95.65 points to 24,002.80.
Gainers and losers on Dalal Street
From the 30-Sensex firms, Infosys, Trent, HCL Tech, Tata Consultancy Services and Maruti were among the gainers.
Bharti Airtel, ITC, Bharat Electronics and InterGlobe Aviation were among the laggards.
Brent crude, the global oil benchmark, traded 1.12 per cent lower at $92.66 per barrel.
Global Market Cues Driving Indian Equities Higher
"There are some positive trends on the economic and market front. Brent crude declining to below USD 93 is a big positive.
"This has happened on expectations of a deal between the US and Iran.
"Therefore, if a deal happens crude can decline further, thereby improving India's macros which have been under pressure from the energy crisis," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index and Hong Kong's Hang Seng index were trading higher, while Shanghai's SSE Composite index quoted lower.
US markets ended higher on Thursday.
Impact of US-Iran Truce Reports
Reports indicate that the United States and Iran have agreed to a 60-day truce renewal, pending final approval from US President Donald Trump, Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
"Although formal confirmation is still awaited, the development has significantly improved global risk sentiment and raised hopes of sustained de-escalation in the Middle East," he added.
Stock markets were closed on Thursday for Eid-ul-Azha.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,042.70 crore on Wednesday, according to exchange data.
