Sensex Rallies 300 Points from Intraday Low, Nifty Nears 24,400 Amid Optimism Over US-Iran Peace Talks

Indian Equity Indices Trade Higher Amid Easing Crude Oil Prices and US-Iran Peace Deal Hopes

The benchmark equity indices Sensex and Nifty traded higher in a volatile session on Thursday, driven by easing crude oil prices and hopes of a possible US-Iran peace deal. Despite persistent foreign fund outflows, investors remained cautious due to ongoing geopolitical tensions.

During the session, the Sensex fluctuated between highs and lows on the weekly Sensex expiry day. At around 10:45 am, the index recovered over 300 points from its day's low and was trading 9.58 points or 0.012 percent higher at 77,968.10. The broader Nifty advanced to 24,365.20, up 34.25 points or 0.14 percent.

The broader market also remained firm, with the Nifty Smallcap100 and Nifty Midcap100 indices gaining 0.5 percent each. Bajaj Auto rose 1.2 percent, while Paytm gained 5 percent after reporting upbeat quarterly earnings.

Read also: Market Analysis: Key Stocks to Watch - Narayana Hrudayalaya, ABB India, Federal Bank, Premier Energies, Ather Energy and More

The decline in crude oil prices is considered positive for India, the world's third-largest crude importer. Brent crude prices had declined 7.83 percent to settle at USD 101.27 per barrel in the previous session and were hovering around USD 102 on Thursday, up marginally by 0.77 percent. Lower crude prices ease inflationary pressures and support economic growth and corporate earnings.

The market is also influenced by firm global cues. In Asian markets, South Korea's Kospi, Shanghai's SSE Composite, and Hong Kong's Hang Seng indices were trading higher. US markets had ended sharply higher on Wednesday, while Japan's Nikkei crossed the 62,000 mark for the first time.

Market sentiment improved after US President Donald Trump expressed optimism over a possible agreement with Iran. Trump stated that the US and Iran are having "very good talks" and that a deal is "very possible." Discussions are underway on a memorandum aimed at formally ending the conflict and initiating talks on reopening shipping through the Strait of Hormuz, easing US sanctions on Iran, and setting curbs on Iran's nuclear program.

Read also: FirstClub Secures $55 Million in Funding from Peak XV, Sofina, and Other Investors 9 Months After $22 Million Series A Round

Analysts said the Nifty would need to hold above key levels to sustain the ongoing recovery. Rajesh Palviya, Head of Research at Axis Direct, said that a close above 24,500 could extend the rally towards 24,700, while failure to hold 24,250 may drag the index towards 24,000 levels. Palviya added that sectors such as pharma, banking, EMS, and capital market-linked themes could witness bullish momentum in the near term.