Nifty and Sensex Rise 0.6% as Trump Signals Iran Deal Progress; Oil Prices Ease

Indian equity benchmarks BSE Sensex and Nifty 50 rose sharply in early trade on Tuesday, gaining around 0.6% as investor sentiment improved amid easing geopolitical tensions and positive global cues. The rally was broad-based, with most sectoral indices trading in the green and midcap and smallcap stocks also participating in the upward movement.

In early trading, the Nifty 50 climbed close to the 24,250 mark, while the Sensex surged over 650 points to cross 77,600. Gains were led by sectors such as PSU banks, IT, auto, and financial services, reflecting renewed buying interest across key segments. However, FMCG and energy stocks lagged behind, trading slightly in the red during the session.

The primary trigger for the rally was a shift in global sentiment following remarks by Donald Trump regarding progress in negotiations with Iran. Trump announced a temporary pause in maritime operations in the Strait of Hormuz, signalling a potential de-escalation in tensions that had previously unsettled global markets.

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A second major factor supporting the rally was the decline in global oil prices, which eased concerns about inflation and input costs for Indian companies. Brent crude prices slipped after recent highs, while US crude hovered near the $100-per-barrel mark, providing relief to energy-importing economies like India and boosting investor confidence.

Global market performance also contributed to the positive momentum in Indian equities. Asian markets showed strong gains, with benchmarks in South Korea and Australia rising, while other regional indices reflected optimism following easing geopolitical risks. Improved global cues often influence domestic market trends, especially during periods of heightened uncertainty.

The rally extended to broader markets as well, with midcap and smallcap indices registering notable gains. Analysts note that while the current uptrend is supported by global developments, sustainability will depend on continued stability in geopolitical conditions, oil prices, and domestic economic indicators in the coming sessions.

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