Stock markets extend winning run to 3rd day on US-Iran peace deal; Sensex up 544 pts

New Delhi: Benchmark stock indices Sensex and Nifty rose for the third consecutive day on Tuesday, propelled by a positive trend in global markets and softening crude oil prices following a peace deal between the US and Iran.

The 30-share BSE Sensex jumped 544.15 points, or 0.71 percent, to settle at 76,808.48 following gains in IT, select energy and banking stocks. Intraday, it surged 582.41 points, or 0.76 percent, to 76,846.74.

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The 50-share NSE Nifty climbed 135.25 points, or 0.57 percent, to end at 23,989.15. During the day, it jumped 148.7 points, or 0.62 percent, to 24,002.60..

In three straight sessions, Sensex jumped 2,975.93 points, or 4 percent, and the Nifty climbed 827.55 points, or 3.57 percent.

Foreign investors turning net buyers in Indian equities also boosted the sentiment, according to experts.

Among the 30 Sensex firms, HCL Tech rose the most by 3.59 percent a day after the IT major announced a Rs 1,427 crore investment in government-backed sovereign AI model developer Sarvam AI for a 10.46 percent stake.

Bajaj Finserv, NTPC, Hindustan Unilever, Tata Consultancy Services and Bajaj Finance were also among the winners.

InterGlobe Aviation, UltraTech Cement, Maruti and Tata Steel were among the laggards.

Brent crude, the global oil benchmark, traded 2 percent lower at USD 81.45 per barrel.

"Domestic equity markets continued their recovery momentum, buoyed by growing optimism around a de-escalation in US–Iran tensions and softening crude oil prices. The rally was broad-based, with notable gains in IT, realty, FMCG, and oil & gas sectors," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Broader markets also ended higher. The BSE MidCap Select index climbed 0.64 percent and SmallCap Select index went up by 0.59 percent.

Sectorally, Realty jumped 2.27 percent, Focused IT (1.72 percent), IT (1.66 percent), FMCG (1.12 percent), Energy (1 percent) and Oil & Gas (0.85 percent).

Metal, Commodities and Auto were among the laggards.

A total of 2,368 stocks advanced, while 1,886 declined and 153 remained unchanged on the BSE. In Asian markets, South Korea's Kospi and Japan's Nikkei 225 index ended higher, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled lower.

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Markets in Europe were trading higher. US markets ended in positive territory on Monday. The Nasdaq Composite jumped 3.07 percent, S&P 500 surged 1.65 percent and Dow Jones Industrial Average climbed 0.92 percent.

Foreign Institutional Investors (FIIs) turned buyers on Monday, purchasing equities worth Rs 200.05 crore on net basis, according to exchange data.

The US and Iran reached an agreement on Sunday to reopen the Strait of Hormuz, a move expected to facilitate the resumption of oil and natural gas shipments through one of the world's most important energy transit routes.

Details of the agreement have not been made public.

Iran has indicated implementation will begin only after a formal signing ceremony, which Pakistan, a key mediator in the negotiations, said is scheduled to take place in Switzerland on Friday.

On Monday, the Sensex jumped 736.38 points, or 0.97 percent, to settle at 76,264.33. The Nifty surged 231 points, or 0.98 percent, to end at 23,853.90.

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