Sensex Surges 350 Points, Nifty Crosses 23,750 Amid Hopes of Iran Truce

Market Rises on Hopes of Nuclear Deal with Iran and Easing Crude Oil Prices

The stock market benchmark indices Sensex and Nifty rose on Tuesday as US President Donald Trump signalled a possible nuclear deal with Iran, reviving hopes of a de-escalation of the three-month-old war. Easing crude oil prices also supported market sentiment.

At 10:30 am, the Sensex was up 353.11 points or 0.47 percent at 75,668.15, while the broader Nifty advanced to 23,751.95, up 102 points or 0.43 percent.

The market's positive trend was reflected across most sectoral indices, with only the private bank index trading marginally lower. The broader Nifty Smallcap100 and Nifty Midcap100 gained 1.08 percent and 1.26 percent, respectively.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The easing of geopolitical concerns was a major factor behind the market's rise. US President Donald Trump said he has halted fresh strikes on Iran at the request of Qatar, Saudi Arabia and the UAE, stating that serious discussions were underway with Tehran that could lead to an acceptable deal.

Recent remarks from Trump indicating that the US is delaying potential military action against Iran at the request of Gulf leaders have offered near-term hopes of de-escalation, according to Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.

Easing crude oil prices also supported the market. Brent crude, the global oil benchmark, traded 2 percent lower at USD 109.9 per barrel.

Foreign Institutional Investors (FIIs) bought shares worth Rs 2,813.69 crore on Monday, marking the third straight session of buying. Sustained FII inflows improve market sentiment as they indicate overseas investor confidence and support liquidity.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

The market also received support from firm global cues. In Asian markets, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading higher.

Strong buying in IT shares was another major factor behind the market's rise. The Nifty IT index gained nearly 4 percent, extending gains for the third straight session amid a stronger dollar and weakening rupee. IT stocks, which carry significant weight in benchmark indices, supported overall market sentiment.

The index had seen a sharp correction last week amid concerns that new artificial intelligence deployments by OpenAI could increase competition for Indian IT companies and impact revenues and market share.

Buying in Adani shares was also seen, with shares of Adani Group companies rallying after the US Department of Justice permanently dropped all criminal charges against billionaire Gautam Adani and his nephew Sagar Adani.

Comparison of Nifty Sectoral Indices