Stock Market Surges Today: Sensex Climbs Above 75,500, Nifty50 Reclaims 23,600 — Key Drivers Behind the Rally
Indian equities surged sharply on Friday as the Nifty50 and BSE Sensex rallied on hopes of a possible peace deal between the United States and Iran. The Sensex jumped more than 1,500 points, while the Nifty50 climbed back above the 23,500 level. The strong rebound lifted the combined market capitalisation of BSE-listed companies by more than Rs 7 lakh crore, pushing the total valuation to nearly Rs 460 lakh crore.
Buying was broad-based, with all 30 Sensex constituents trading in the green. Tata Steel, IndiGo, Larsen & Toubro, Eternal, State Bank of India and Tech Mahindra were among the leading gainers, each rising by as much as 3%. The positive trend was not limited to large-cap stocks, as mid- and small-cap shares also participated in the rally. The Nifty Midcap 100 and Nifty Smallcap 100 indices each rose by close to 2%, reflecting improved risk appetite across the market.
Investor sentiment improved after US President Donald Trump suggested on Thursday that Washington and Tehran could reach a peace agreement as early as the weekend. That possibility raised hopes that the Strait of Hormuz could reopen to global shipping, easing concerns about energy supply disruptions. Trump also withdrew plans for additional military action against Iran, saying diplomatic efforts to end the conflict were making progress.
The easing of geopolitical tensions triggered a sharp fall in crude oil prices. Brent crude futures dropped around 4% to trade below $87 a barrel, while West Texas Intermediate futures declined more than 4% to around $83 a barrel. Oil prices had earlier surged past $120 a barrel this year after the closure of the Strait of Hormuz, which had rattled global markets and raised fears of prolonged supply constraints. The latest decline in crude prices helped support sentiment in equities, especially in oil-sensitive economies such as India.
Global markets also responded positively to the developments. Asian equities joined the rally as investors welcomed the possibility of reduced tensions in West Asia and lower crude prices. Japan’s Nikkei index advanced nearly 3%, South Korea’s Kospi surged more than 8%, while Hong Kong’s Hang Seng and China’s Shanghai Composite each gained around 2%. Taiwan’s benchmark index also rose by about 2.5%, underscoring the broad regional improvement in market mood.
The Indian rupee strengthened as well, gaining 60 paise to 95.25 against the US dollar in early trade. The currency benefited from softer oil prices and a recovery in global risk appetite. Market participants said crude price trends will remain the key driver for the rupee in the near term, alongside foreign fund flows and overall international sentiment. According to analysts, the rupee is expected to trade in a range of 95.25 to 95.95 in the short term.
The sharp market rally, easing oil prices and stronger currency together reflected renewed optimism that diplomatic progress in the Middle East could help stabilise global markets and reduce pressure on India’s economy.
