The S&P BSE Sensex surged 1,073.61 points, or 1.42%, to settle at 76,488.96, while the NSE Nifty50 jumped 250.30 points, or 1.06%, to close at 23,969.60. Investor sentiment improved after US President Donald Trump said Washington and Iran had “largely negotiated” a memorandum of understanding on a peace deal that could reopen the Strait of Hormuz, a key global energy shipping route. The development raised hopes of easing supply disruptions and lower energy costs. Crude oil prices declined sharply, with Brent crude falling 5.65% to $97.69 per barrel, while WTI crude slipped 5.76% to $91.04 per barrel. The Indian rupee also strengthened 0.5% to 95.23 against the US dollar by the close of trade, compared to its previous close of 95.69. Broader markets outperformed benchmark indices, with the Nifty Midcap 100 rising 0.94% and the Nifty Smallcap 100 gaining 1.37%. India VIX, the volatility index, dropped 6.74%, indicating easing market nervousness. Among sectoral indices, Nifty PSU Bank emerged as the top gainer, climbing 2.90%, while Nifty Financial Services rose 2.18% and Nifty Private Bank advanced 2.09%. Nifty Auto gained 1.71%, while Nifty Realty climbed 1.50%. Nifty Consumer Durables and Nifty Oil & Gas also ended firmly higher. On the Sensex pack, Bajaj Finance led the gainers, rising 2.80%. Larsen and Toubro climbed 2.71%, while HDFC Bank gained 2.67%. Eternal Ltd advanced 2.40%, and Bajaj Finserv rose 2.37%. State Bank of India, ICICI Bank and Mahindra and Mahindra also ended with strong gains. On the losing side, Infosys declined 0.49%, Tata Consultancy Services fell 0.41%, Sun Pharmaceutical Industries slipped 0.21%, and Hindustan Unilever edged down 0.07%. Vinod Nair, Head of Research, Geojit Investments Limited, said, “Markets witnessed strong positive momentum, driven by a correction in crude oil prices amid rising expectations of a potential US–Iran deal. Global sentiment improved on reports of progress towards reopening the Strait of Hormuz, although credibility remains uncertain given frequent shifts in developments.” “The rally was led by large caps, supported by relatively attractive valuations versus long-term averages. On the sectoral front, financials outperformed on the back of strong Q4 earnings, while autos remained constructive,” he added. Nair further said, “Realty also saw renewed interest following its recent sharp correction. On the macro front, global yields softened modestly, while rupee depreciation appears to have stabilised, aided by RBI commentary highlighting that the INR is undervalued, though it is early to confirm a sustained trend.” “Sustainability of this momentum will depend on a credible de-escalation in geopolitical tensions and continued stability in crude oil prices,” he added.
The S&P BSE Sensex surged 1,073.61 points, or 1.42%, to settle at 76,488.96, while the NSE Nifty50 jumped 250.30 points, or 1.06%, to close at 23,969.60.
Investor sentiment improved after US President Donald Trump said Washington and Iran had “largely negotiated” a memorandum of understanding on a peace deal that could reopen the Strait of Hormuz, a key global energy shipping route. The development raised hopes of easing supply disruptions and lower energy costs.
Crude oil prices declined sharply, with Brent crude falling 5.65% to $97.69 per barrel, while WTI crude slipped 5.76% to $91.04 per barrel. The Indian rupee also strengthened 0.5% to 95.23 against the US dollar by the close of trade, compared to its previous close of 95.69.
Broader markets outperformed benchmark indices, with the Nifty Midcap 100 rising 0.94% and the Nifty Smallcap 100 gaining 1.37%. India VIX, the volatility index, dropped 6.74%, indicating easing market nervousness.
Among sectoral indices, Nifty PSU Bank emerged as the top gainer, climbing 2.90%, while Nifty Financial Services rose 2.18% and Nifty Private Bank advanced 2.09%. Nifty Auto gained 1.71%, while Nifty Realty climbed 1.50%. Nifty Consumer Durables and Nifty Oil & Gas also ended firmly higher.
On the Sensex pack, Bajaj Finance led the gainers, rising 2.80%. Larsen and Toubro climbed 2.71%, while HDFC Bank gained 2.67%. Eternal Ltd advanced 2.40%, and Bajaj Finserv rose 2.37%. State Bank of India, ICICI Bank and Mahindra and Mahindra also ended with strong gains.
On the losing side, Infosys declined 0.49%, Tata Consultancy Services fell 0.41%, Sun Pharmaceutical Industries slipped 0.21%, and Hindustan Unilever edged down 0.07%.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “Markets witnessed strong positive momentum, driven by a correction in crude oil prices amid rising expectations of a potential US–Iran deal. Global sentiment improved on reports of progress towards reopening the Strait of Hormuz, although credibility remains uncertain given frequent shifts in developments.”
“The rally was led by large caps, supported by relatively attractive valuations versus long-term averages. On the sectoral front, financials outperformed on the back of strong Q4 earnings, while autos remained constructive,” he added.
Nair further said, “Realty also saw renewed interest following its recent sharp correction. On the macro front, global yields softened modestly, while rupee depreciation appears to have stabilised, aided by RBI commentary highlighting that the INR is undervalued, though it is early to confirm a sustained trend.”
“Sustainability of this momentum will depend on a credible de-escalation in geopolitical tensions and continued stability in crude oil prices,” he added.