Sensex, Nifty rise on optimism over possible US-Iran agreement

Indian equity benchmarks traded higher on Thursday morning as investor sentiment improved amid growing optimism over a possible diplomatic breakthrough between the United States and Iran.

The BSE Sensex rose nearly 380 points, or 0.48 per cent, to touch an intraday high of 78,339.24, while the NSE Nifty climbed 92 points, or 0.37 per cent, to 24,423.35 in early trade.

Market sentiment strengthened after reports suggested that Iran was reviewing a peace proposal from the United States aimed at ending the ongoing conflict in West Asia. According to reports, the proposal seeks to formally conclude hostilities, although differences remain over Washington’s demands regarding Iran’s nuclear programme and the reopening of the Strait of Hormuz.

Among the Sensex and Nifty gainers were auto and metal stocks, while select FMCG and banking shares lagged behind. Shares of Tata Consumer, Power Grid, Hindustan Unilever, TCS, HDFC Bank, Titan, NTPC and Sun Pharma were among the major losers during morning trade.

Sector-wise, Nifty Auto and Nifty Metal indices advanced up to 0.78 per cent, while Nifty Realty, FMCG, Consumer Durables and Private Bank indices declined by as much as 0.7 per cent.

Analysts said markets were reacting positively to signs of possible de-escalation in West Asia, although uncertainty continued to keep investors cautious.

They also pointed to growing concentration risks in the artificial intelligence sector globally, warning that elevated valuations could trigger corrections in technology-linked investments. According to market experts, any moderation in the AI rally could influence the direction of foreign portfolio investment flows into India.

The geopolitical situation in West Asia continued to fuel volatility in crude oil prices, leading to fluctuating market sentiment.

“Markets are currently oscillating between optimism and caution, and this trend is likely to continue until there is greater clarity on the geopolitical front,” analysts said.

On the corporate earnings front, investors continued to reward companies reporting strong fourth-quarter performances, while firms missing expectations faced selling pressure.

Reports also indicated that an Iranian foreign ministry spokesperson had confirmed Tehran would soon communicate its response to the US proposal.

Meanwhile, US President Donald Trump said he believed Iran was interested in reaching an agreement.

In the commodities market, Brent crude futures rose 1.21 per cent to USD 102.50 per barrel, while US West Texas Intermediate crude gained 1.47 per cent to trade at USD 96.48.

Asian markets also traded firmly higher, with the Nikkei, Hang Seng and KOSPI indices registering gains. On Wall Street, US markets ended the previous session in positive territory, with the S&P 500 rising 1.46 per cent and the Nasdaq closing 2 per cent higher.

With IANS inputs