Nifty Climbs 0.8% Amid Speculation of US Temporary Waiver on Iran Oil Sanctions

Global Markets React to US-Iran Tensions

The Indian stock market, represented by the GIFT Nifty, saw a 0.8% increase on May 18 evening as Wall Street futures recovered from their day's lows. This gain was partly attributed to the easing of Brent crude prices to $107.5, down from nearly $112, following reports from Iran's semi-official news agency, Tasnim, that the US has proposed a temporary waiver on Iran oil sanctions. The news, which was cited by Tasnim sources close to the US negotiation team, suggests that Iranian oil sanctions could be temporarily relaxed while talks continue.

The fragile ceasefire between the US and Iran, which has now extended past 40 days, remains a significant concern. President Donald Trump has expressed frustration with Tehran, stating that the "clock is ticking." Additionally, a recent drone attack on a nuclear power plant in the United Arab Emirates has heightened tensions in the region.

In the Indian market, the Nifty 50 closed 0.03% higher at 23,649.95 on May 18, while the BSE Sensex added 0.1% to 75,315.04. However, the market indexes fell as much as 1.4% during the session. Eleven of the 16 major sectors saw declines, with small-caps and mid-caps losing 1.3% and 0.2%, respectively.

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The IT index was a notable exception, jumping 2.4% on expectations of better profit growth for companies that earn a large share of revenue in the US dollar. This gain was partly due to the strengthening dollar, which had dropped 5.7% last week.

Wall Street futures also saw a recovery on May 18, with Nasdaq futures trading 0.1% lower and S&P 500 futures down 0.15% compared to earlier in the day.