- Indian indices surged, driven by global diplomatic breakthrough optimism.
- Trump’s Iran peace deal announcement sparked global market optimism.
- Global and Asian markets surged; crude oil prices declined.
The Indian benchmark indices witnessed a rise on Friday as the Sensex jumped over 1,600 points to close at 75,526 and the Nifty rose over 461 points to settle at 23,622 at 3:30 PM.
Previously, during the early morning session, the Sensex gained more than 921 points to open trade at 74,753 and the Nifty surged over 254 points to start at 23,417 at 9:15 AM.
Global Markets
Global markets received a boost on Friday after US President Donald Trump claimed that a deal to end the conflict with Iran was nearly complete and could be signed as early as this weekend in Europe.
Speaking to reporters in the Oval Office on Thursday, Trump said Vice President J D Vance is expected to attend the signing ceremony, which could take place in Europe. The announcement came just hours after Trump had threatened to take control of Iran’s oil industry before subsequently calling off planned military strikes against the country.
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Later, during a tele-rally in support of Georgia Lieutenant Governor Burt Jones, who is contesting for the Governor’s post, Trump declared that the conflict had effectively come to an end.
“I don’t know if you heard, but we ended the war with Iran today (Thursday), and they have agreed never to have a nuclear weapon, something that we insisted on. That was the whole purpose,” Trump said.
Diplomatic Breakthrough Lifts Global Sentiment
The prospect of a diplomatic resolution triggered a strong rebound across global equity markets and eased concerns surrounding geopolitical tensions in the Middle East.
According to Hariprasad K, Research Analyst and Founder of Livelong Wealth, the biggest overnight trigger came from the United States, where markets rallied after Trump signalled a diplomatic breakthrough with Iran and cancelled planned military action.
“The development significantly reduced geopolitical risk premiums that had been weighing on global equities and energy markets over the past week,” he said.
Asian Markets Surge
The improved sentiment was reflected across Asian markets.
South Korea’s Kospi surged more than 8 per cent, while Japan’s Nikkei 225 gained over 3 per cent. China’s Shanghai SSE Composite and Hong Kong’s Hang Seng Index also traded higher.
US markets had ended significantly higher on Thursday, setting the tone for gains across Asia.
Crude Oil Prices Decline
One of the most significant developments for investors was the sharp decline in oil prices.
Brent crude, the global benchmark, fell 1.62 per cent to USD 88.92 per barrel. According to market analysts, the correction in oil prices has eased concerns over imported inflation, the current account deficit and rupee stability.
“For India, the most significant macro development is the sharp decline in crude oil prices. Brent crude has corrected nearly 4 per cent,” Hariprasad said.
Indian Markets And FII Activity
Despite the improving global outlook, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 1,987.09 crore on Thursday, according to exchange data.
Among Sensex constituents, InterGlobe Aviation, Larsen & Toubro, Bajaj Finance, Eternal, Trent and HDFC Bank emerged as the top gainers, while Tech Mahindra was the only laggard in the 30-share pack.
In the previous session, the BSE Sensex had declined 150.63 points, or 0.20 per cent, to close at 73,832.55. The Nifty also ended lower by 53.35 points, or 0.23 per cent, at 23,161.60.
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