Indian markets rally as easing US-Iran tensions boost sentiment

Indian equity markets surged with Nifty and Sensex gaining over 1.6 per cent each, driven by easing US-Iran tensions and positive global cues. Broader markets outperformed, while the rupee strengthened slightly amid cooling crude oil prices

Mumbai: Indian equity markets rallied sharply on optimism over easing geopolitical tensions after US President Donald Trump indicated that the conflict with Iran could be nearing an end, boosting investor sentiment and risk appetite.

The benchmark indices ended the session on a strong note, with the Nifty rising 1.63 per cent, or 388.65 points, to close at 24,231.30.

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The Sensex also gained 1.64 per cent, or 1,264 points, to settle at 78,111.24.

Experts said that from a technical perspective, 24,300-24,400 remains a crucial resistance zone, and a decisive breakout above this range is required to extend the rally towards 24,800–25,000 levels.

“On the downside, immediate support is placed near 24,000 mark, followed by a stronger base around 23,900–23,800, which is expected to act as a key demand zone,” an analyst stated.

The rally was broad-based, with several heavyweight stocks leading the gains. Among the top performers on the Nifty were InterGlobe Aviation, Max Healthcare Institute, Power Grid Corporation of India and Eternal.

Broader markets outperformed the headline indices, reflecting strong participation from mid- and small-cap stocks.

The Nifty MidCap rose 2.20 per cent, while the Nifty SmallCap advanced 2.35 per cent.

On the sectoral front, construction-related stocks led the gains, with the Nifty Construction Durable index emerging as the top performer.

The IT and media sectors also saw strong buying interest — indicating improved investor confidence in growth-oriented segments.

However, not all sectors participated equally in the rally. The Nifty PSU Bank index lagged the broader market, reflecting relative weakness in state-owned banking stocks.

Among thematic indices, capital markets, tourism and railway PSU stocks outperformed, while rural-focused and CPSE indices underperformed the broader trend.

Analysts said that the market rally was driven by improving global cues and easing geopolitical concerns, which helped restore investor confidence and trigger buying across sectors.

Meanwhile, Rupee traded marginally stronger near 93.36, supported by improving sentiment after the second round of US–Iran talks, which has led to a cooling in crude oil prices over the past two sessions.

“Lower crude, now slipping towards the $94–95 range, is easing pressure on India’s import bill and providing short-term relief to the currency,” an analyst stated.