Sensex, Nifty open higher as crude oil eases on hopes of Iran peace deal
The BSE Sensex jumped 345.02 points, or 0.46%, to 75,663.41 in early trade, while the NSE Nifty50 rose 131.30 points, or 0.55%, to 23,790.30 as of 9:44 am.
stock markets opened higher on Thursday as easing crude oil prices and hopes of a possible peace deal between the US and Iran lifted investor sentiment.
The BSE Sensex jumped 345.02 points, or 0.46%, to 75,663.41 in early trade, while the NSE Nifty50 rose 131.30 points, or 0.55%, to 23,790.30 as of 9:44 am.
Markets gained after crude oil prices cooled sharply overnight following comments by US President Donald Trump suggesting that negotiations with Iran may be nearing a conclusion.
Brent crude oil prices, which had surged above USD 110 per barrel during the recent Iran conflict, slipped sharply on Wednesday and were trading near USD 105.87 per barrel on Thursday morning. WTI crude was around USD 99.18 per barrel.
The fall in crude oil prices is being seen as a positive sign for India, which imports a large share of its oil requirements.
CRUDE OIL, RUPEE REMAIN KEY FOCUS
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said investors are closely watching crude oil prices and rupee stability.
“The recent market movements indicate a buy on dips market construct. Buy on dips strategy has been working well,” he said.
He added that the decline in Brent crude prices was helping improve market sentiment.
“Brent crude declining to USD 106 this morning is a positive signal. Perhaps the market is taking cues from President Trump’s remark that ‘the conflict will end soon and oil prices would plummet’,” Vijayakumar said.
However, he cautioned that markets would need stronger confirmation before turning fully optimistic.
ALL MAJOR SECTORS TRADE HIGHER
Buying was visible across sectors, with all 16 major sectoral indices trading in the green.
Nifty Realty rose 1.14%, while Nifty Metal gained 0.92%. Nifty Media climbed 0.75%, and Nifty Healthcare advanced 0.70%.
Financial stocks also supported the market, with Nifty Financial Services rising 0.50% and Nifty PSU Bank gaining 0.57%.
Broader markets remained strong as well. Nifty Midcap100 was up 0.59%, while Nifty Smallcap100 climbed 0.94%.
India VIX, the market’s fear gauge, dropped 2.80%, indicating easing volatility.
WHICH STOCKS GAINED?
Among Sensex and Nifty stocks, IndiGo led the gains with a rise of more than 3%.
BEL jumped 2.44%, Asian Paints gained 1.59%, while Eternal rose 1.19%.
Power Grid, Adani Ports, Axis Bank, ICICI Bank, HCLTech and SBI also traded higher.
IT stocks remained mixed. Infosys, TCS and Tech Mahindra saw limited movement in early trade.
On the losing side, Bajaj Finance, Titan and Reliance Industries traded marginally lower.
FOREIGN INVESTOR FLOWS IN FOCUS
Vijayakumar said weakness in South Korean and Taiwanese markets may work in India’s favour.
“The correction in KOSPI and TAIEX and the FPI selling in these markets indicate concerns around bubble valuations in AI stocks in these markets,” he said.
“Since valuations in India are fair, and even attractive in certain pockets, FPIs may turn buyers infusing some optimism in the market,” he added.
Foreign investors had recently turned buyers in Indian equities after weeks of heavy selling pressure triggered by rising oil prices and the Iran conflict.
WHAT INVESTORS ARE WATCHING NOW
Investors are expected to closely track:
- crude oil prices,
- Iran-US negotiations,
- rupee movement,
- foreign investor activity,
- and global bond yields.
Analysts said Q4 earnings have remained largely supportive so far, though the impact of elevated energy prices could start reflecting in company earnings during the first quarter of FY27.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)