The domestic equity market staged a sharp rally on Friday afternoon after reports that Iran had confirmed a deal with the US, boosting hopes of a lasting de-escalation in West Asia and triggering a fresh
wave of buying across global risk assets.
At 1:58 pm, the BSE Sensex surged 1,251 points, or 1.71%, to 75,086, while the NSE Nifty 50 jumped 346 points, or 1.49%, to 23,509. The Nifty reclaimed the 23,500 mark and touched an intraday high of 23,509, while the Sensex crossed the psychologically important 75,000 level during the session, hitting a high of 75,086.
The latest leg of the rally was triggered after Iranian state media reportedly confirmed an agreement with the US that includes the lifting of sanctions, withdrawal of US military presence from around Iran, and an end to the naval blockade. The development significantly reduced geopolitical risk premiums that had weighed on global markets and crude oil prices in recent weeks.
Iran’s Mehr News Agency said Iran and the US have signed an MoU, which includes commitments to lift oil sanctions, reopen the Strait of Hormuz, release Iran’s frozen funds, and withdraw US forces from around Iran. It also reported that 60 days of talks focussed on nuclear matters are set to begin, signalling a significant diplomatic development in ongoing nuclear negotiations.
Financials led the market higher, with Nifty Bank soaring 2.05% to 56,307 and Nifty Financial Services gaining 2.09%. Nifty Private Bank climbed 2.07%, while Nifty Financial Services Ex-Bank advanced 2.28%, making it one of the top-performing sectoral indices.
Broader markets also witnessed strong buying interest. The Nifty Smallcap 100 rose 2.01%, Nifty Smallcap 250 gained 1.87%, while the Nifty Midcap 100 advanced 1.57%, reflecting broad-based participation across market segments.
Among sectoral indices, Nifty Realty climbed 2.02%, Nifty PSU Bank rose 1.75%, Nifty Consumer Durables gained 1.48%, and Nifty Chemicals added 1.27%. Nifty IT remained the only major laggard, slipping 0.13%.
IndusInd Bank emerged as the top Nifty gainer, soaring 4.22%, followed by Larsen & Toubro (3.17%), Bajaj Finance (3.13%), HDFC Bank (2.72%), Eternal (2.61%) and Titan (2.50%). Axis Bank, Kotak Mahindra Bank, Bharti Airtel and Bajaj Finserv also gained nearly 2% each.
The rally in banking stocks pushed the Nifty Bank index above the 56,300 mark, bringing it closer to its recent highs and reinforcing bullish sentiment in the financial sector.
Market volatility continued to ease, with India VIX falling 5.3% to 14.79, indicating reduced investor anxiety amid improving geopolitical conditions.
The sharp rebound in equities also coincided with continued weakness in crude oil prices. Lower oil prices are seen as a major positive for India as they help reduce inflationary pressures, improve the current account balance and support corporate earnings, particularly in sectors such as aviation, paints, automobiles, chemicals and oil marketing companies.
