Markets Extend Rally for Third Day as Iran Talks Boost Sentiment, Nifty Tops 24,550

Indian equity benchmark indices extended their gaining streak for the third consecutive session on Tuesday, supported by broad-based buying across sectors and improving global sentiment amid hopes of renewed US-Iran talks.

The Sensex surged 753.03 points or 0.96% to close at 79,273.33, while the Nifty advanced 211.75 points or 0.87% to settle at 24,576.60, comfortably above the 24,550 mark.

Market breadth remained strong, with broader indices also ending higher. The Nifty Midcap index rose 0.5%, while the Smallcap index gained nearly 1%, reflecting sustained participation beyond frontline stocks.

FMCG, Banking and Realty Lead Broad-based Rally

All sectoral indices ended in the green, with FMCG and realty stocks leading the rally, gaining around 2% each. Banking and telecom indices also advanced about 1%, contributing to the overall upside.

Among Nifty stocks, Nestle India, Hindustan Unilever, Trent, ICICI Bank and Bajaj Finance were among the top gainers, while SBI Life Insurance, Bharat Electronics, Jio Financial, Dr Reddy's Laboratories and Titan Company were among the laggards.

More than 140 stocks touched their 52-week highs on the BSE, including Bank of Maharashtra, AU Small Finance Bank, Data Patterns, Syrma SGS, SAIL, Hitachi Energy, Welspun Corp, JSW Energy, Adani Ports, CG Power, Siemens, NTPC and Vedanta, highlighting strong underlying market momentum.

Vinod Nair, Head of Research at Geojit Investments, said the rally was driven by improving global cues and easing geopolitical concerns. He noted that optimism around US–Iran talks and supportive earnings updates boosted sentiment, while banking stocks gained after the RBI eased forex restrictions. He added that investors will continue to track corporate earnings along with developments in crude prices and currency markets.

Banking Stocks Drive Momentum

Banking stocks played a key role in driving the rally, with heavyweights such as ICICI Bank, HDFC Bank and Axis Bank contributing significantly to the upside.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the Nifty continued its upward trajectory and formed a strong bullish candle, indicating strengthening sentiment. He noted that the index closed at 24,576, extending gains for the third straight session.

He added that Bank Nifty outperformed, rising 1.39% to close near the 57,400 mark. The index has formed a bullish candle and moved above its 100-day and 200-day EMAs, signalling improving trend strength. According to him, Bank Nifty could extend gains towards 58,000–58,500 levels in the near term, while 56,800–56,700 is expected to act as immediate support.

Shah also highlighted that India VIX declined sharply by nearly 7%, indicating easing volatility and improving risk appetite among investors.

Global Cues Positive, Rupee Weakens Slightly

Global markets remained largely supportive. Asian indices, including South Korea's Kospi, Japan's Nikkei 225, China's SSE Composite and Hong Kong's Hang Seng, ended higher, while European markets also traded in the green. However, US markets closed slightly lower in the previous session.

In the currency market, the Indian rupee weakened by 16 paise to 93.32 against the dollar, pressured by a firm greenback and easing of RBI's restrictions on speculative positions. However, gains in equities and continued foreign inflows provided some support.