Sensex gains nearly 1,000 points amid US-Iran peace hopes
What's the story
India's benchmark indices witnessed a major surge in early trade on Friday. The BSE Sensex soared by nearly 1,000 points while the NSE Nifty 50 breached the 23,450 mark. This comes as global crude oil prices fell and investor sentiment improved due to easing geopolitical tensions in West Asia. At around 9:20 am, the Sensex was trading at 74,791.94 after gaining 960 points while the Nifty was up by over 288 points to 23,450.
Market response
US-Iran peace deal talks boost market sentiment
The surge in Indian markets comes after US President Donald Trump announced that the US and Iran could sign a peace deal as early as this weekend. The news has eased fears of a prolonged conflict in West Asia, leading to a sharp fall in oil prices. Brent crude slipped below $90 per barrel, providing relief to oil-importing economies like India. Lower crude prices are seen as positive for India as they help reduce inflationary pressures and improve fiscal outlook.
Regional impact
Positive cues from Asian markets
Asian markets also reacted positively to the de-escalation of the West Asia conflict, with regional equities rising over 3%. The Indian market's recovery comes after a difficult period of heightened geopolitical uncertainty. Since the start of the Iran conflict in late February, Nifty and Sensex had fallen by some 8% and 9.2%, respectively, due to concerns over rising energy prices, inflation and slowing economic growth.
Market performance
Nearly all Nifty stocks in green
Friday's gains were broad-based with 49 of the 50 Nifty constituents trading in positive territory. Among Sensex stocks, Larsen & Toubro was the top gainer, rising by over 3%. InterGlobe Aviation (the operator of IndiGo) and Trent also witnessed significant gains. Financial stocks such as Bajaj Finance, HDFC Bank and ICICI Bank contributed significantly to the rally.