US-Iran War Ends? Sensex Soars 1,700 Points as Investors Gain Rs 10 Lakh Crore in Market Rally
Indian stock markets surged sharply on the last trading session of the week after reports emerged of a peace agreement between the United States and Iran. The positive global cue lifted investor sentiment across sectors, driving benchmark indices and broader markets deep into the green. The Sensex climbed 1,695 points, or 2.30%, to close at 75,527.95, while the Nifty rose 461.30 points, or 1.99%, to finish at 23,622.90. Bank Nifty outperformed the broader market with an even stronger rally, gaining 1,638 points, or 2.97%, and closing above 56,800.
The market-wide rise created strong gains for investors as nearly all major indices ended the session in positive territory. Among the BSE Sensex stocks, all but Power Grid and Tech Mahindra closed higher. Bajaj Finance led the gains with a jump of 5.62%, while shares of L&T, IndiGo, Titan and Eternal also rose by up to 5%. The sharp upmove reflected broad-based buying across large-cap stocks, with improved confidence spreading across banking, industrial, consumer and travel-related shares.
Mid-cap and small-cap stocks also witnessed a strong rally, adding to investor wealth across retail and institutional segments. As a result of the day’s surge, the total market capitalization of BSE-listed companies rose by nearly Rs 10 lakh crore, moving from Rs 452.66 lakh crore to above Rs 462 lakh crore. The increase underscored the scale of the rally and the strong risk-on mood that swept through domestic markets.
The main trigger for the surge was news linked to diplomatic progress between Washington and Tehran. According to Iran’s state news agency Mehr, the proposed memorandum between the two countries reportedly includes lifting sanctions, ending the US naval blockade in the Strait of Hormuz and withdrawing American military forces deployed around Iran. US President Donald Trump also said that an agreement to end the conflict with Iran was nearly complete and could be signed within the week. The announcement came only hours after his warning of possible action against Iran’s oil industry, adding to market attention and volatility.
The news also pushed US markets higher, and the upbeat trend carried into Asian markets as well. Lower crude oil prices further supported sentiment. Brent crude fell 5% to USD 86.4 per barrel, near a two-month low, easing pressure on oil-dependent sectors and improving the outlook for inflation-sensitive assets. Shares linked to lower fuel costs benefited from the decline in crude prices.
Asian equities joined the rally, with South Korea’s Kospi rising more than 8% and Japan’s Nikkei 225 advancing over 3%. China’s Shanghai SSE Composite and Hong Kong’s Hang Seng also traded in positive territory, reinforcing the global nature of the market recovery.
The Indian rupee strengthened too, gaining 65 paise against the US dollar to trade at 95.20. Currency traders said the rupee was helped by expectations of lower global crude prices, a weaker dollar and the positive tone in domestic equities. Overall, the session reflected a sharp improvement in risk appetite across financial markets.
