Markets climb nearly 1% on hopes of US-Iran peace talks

mumbai

Stock markets advanced for the third consecutive day on Tuesday, with the Sensex jumping by 753 points and the broader Nifty closing above 24,550 following a drop in crude oil prices and hopes for progress on peace talks between Iran and the US.

The 30-share BSE Sensex jumped 753.03 points or 0.96% to settle at 79,273.33. During the day, it surged 846.78 points or 1.07% to 79,367.08. The 50-share NSE Nifty climbed 211.75 points or 0.87% to end at 24,576.60.

Among the 30 Sensex firms, Trent rose the most by 3.55%. Hindustan Unilever, ICICI Bank, Bajaj Finance, HDFC Bank and Axis Bank were the major winners. Bharat Electronics, Titan, Reliance Industries and NTPC were among the laggards.

Brent crude, the global oil benchmark, traded 0.75% lower at $94.76 per barrel.

"Indian equity markets traded on a positive note, as investors positioned for a potential near-term de-escalation in the Middle East. Energy markets remained in a consolidation phase, as traders balanced hopes of a near-term resolution and a potential reopening of the Strait of Hormuz against ongoing uncertainty around ceasefire negotiations," Ponmudi R, CEO of Enrich Money, said.

Broader markets also advanced with the BSE MidCap Select index jumping 0.73% and the SmallCap Select index by 0.29%. Among sectoral indices, FMCG rallied the most by 2.23%, followed by Realty (2.17%), MidSmall Private Banks Quality Tilt (1.71%), Private Banks index (1.67%), Top 10 Banks (1.66%) and Bankex (1.46%). 

"With the ceasefire deadline arriving tomorrow, all eyes turn to the second round of US-Iran talks. While markets remain hopeful of progress, elevated tensions and uncertain participation make any negative surprise a key downside risk," Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services Ltd, said.