Stock market today: The Nifty50 and BSE Sensex witnessed a strong rally on Friday, driven by hopes that the United States and Iran could reach a peace agreement. The Sensex surged over 1,500 points, while the Nifty50 reclaimed the 23,500 mark. This sharp rally boosted the cumulative market capitalisation of BSE-listed companies by more than Rs 7 lakh crore, taking the overall valuation to nearly Rs 460 lakh crore.
Broad-Based Buying Across Sectors
Buying activity was visible across the board, with all 30 Sensex stocks trading higher. Among the top gainers were Tata Steel, IndiGo, L&T, Eternal, SBI, and Tech Mahindra, which rose as much as 3%. Broader markets also participated in the upward move, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining close to 2% each.
Why Is the Stock Market Rising Today?
Growing Optimism Over a Potential US-Iran Agreement
Investor sentiment received a significant boost after US President Donald Trump indicated on Thursday that Washington and Tehran could finalise a peace agreement as early as this weekend. Such a development could pave the way for the reopening of the Strait of Hormuz to global shipping. In another development, Trump withdrew plans for additional military action against Iran, citing advances in diplomatic efforts aimed at ending the conflict.
Crude Oil Slips Below $90 Per Barrel
Oil prices witnessed a sharp decline, falling below $90 per barrel, as optimism grew over a possible breakthrough in negotiations between Iran and the United States. Expectations that a peace agreement could soon be reached have increased the likelihood of the Strait of Hormuz reopening, easing concerns over global energy supplies. Brent crude futures dropped around 4% to trade below $87 a barrel, while WTI crude futures fell more than 4% to about $83 a barrel. This decline comes after oil prices had surged past $120 per barrel earlier this year following the closure of the strait, a development that had unsettled financial markets worldwide.
Global Equities Join the Rally
Indian markets mirrored the strength seen across global equities as investors responded positively to the decline in crude oil prices and growing confidence that tensions in West Asia may ease. Japan's Nikkei index climbed nearly 3%, while South Korea's Kospi surged more than 8%. Hong Kong's Hang Seng and China's Shanghai Composite advanced around 2% each, while Taiwan's benchmark index gained approximately 2.5%.
Rupee Strengthens
The Indian rupee appreciated by 60 paise to 95.25 against the US dollar in early trade, supported by easing crude oil prices and improving risk appetite across global markets. According to Jateen Trivedi, Vice President and Research Analyst for Commodities and Currencies at LKP Securities, oil price movements will continue to be the primary factor influencing the domestic currency. He added that foreign capital flows and broader global sentiment will also remain important drivers. Trivedi expects the rupee to trade in the 95.25-95.95 range in the near term.
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