Sensex Jumps Over 1,000 Points, Nifty Tops 23,450 As Crude Slips Below $90

Indian benchmark indices rallied sharply on Friday, driven by easing geopolitical tensions in West Asia, falling crude oil prices and a stronger rupee.

The BSE Sensex surged 1,026.61 points, or 1.4%, to an intraday high of 74,859.16, while the NSE Nifty50 climbed 210.20 points, or 1.3%, to 23,455.95.

The rally was broad-based, with all sectoral indices trading in positive territory. Realty stocks led the gains, with the Nifty Realty index rising more than 2%.

Among Sensex constituents, Larsen & Toubro, InterGlobe Aviation, Eternal and Maruti Suzuki were among the top gainers in early trade, while Tech Mahindra was the only notable laggard.

Broader markets also participated in the rally. The Nifty Midcap 100 advanced 1.52%, while the Nifty Smallcap 100 gained 1.7%.

Crude Falls Below $90

The biggest trigger for the rally was a sharp decline in crude oil prices after US President Donald Trump indicated that Washington was close to reaching a settlement with Iran.

Trump said on Thursday that an agreement between the US and Iran was in its final stages and reiterated that Iran would not be allowed to develop nuclear weapons under the proposed deal.

The development eased fears of a prolonged disruption in the region and pushed Brent crude below the key $90-per-barrel mark.

Brent crude fell 1.59% to $88.94 per barrel, while WTI crude declined 1.47% to $86.42 per barrel.

Lower oil prices are particularly beneficial for India, which imports the majority of its crude oil requirements. A decline in crude prices helps ease inflationary pressures, improves the current account balance and supports the domestic currency.

Rupee Rebounds Sharply

Reflecting the improved sentiment, the rupee appreciated strongly against the US dollar.

The domestic currency rose 65 paise to 95.20 in early trade after opening at 95.40. The rupee had settled at 95.85 on Thursday after witnessing sharp weakness in recent sessions.

Market participants believe a sustained decline in crude prices could help stabilise the rupee further and improve India's balance of payments position.

The positive sentiment was reflected across global markets.

South Korea's Kospi jumped 8.27%, Japan's Nikkei rose 3.47%, China's CSI 300 gained 1.53% and Hong Kong's Hang Seng advanced 1.85%.

Wall Street had also ended sharply higher overnight. The Dow Jones rose 1.86%, while the S&P 500 and Nasdaq gained 1.75% and 2.54%, respectively.

Analysts See Scope For Short Covering

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the market's reaction was largely driven by the sharp fall in crude oil prices following Trump's latest comments on Iran.

"In keeping with his ludicrous inconsistency, President Trump backed off from his threat to hit Iran very hard tonight and declared that we are close to a great settlement to end the war," Vijayakumar said.

He noted that Brent crude's decline to around $89 could help India manage the balance of payments pressures that emerged during the conflict, while also supporting the rupee.

According to him, a stabilising currency and the large short positions held by foreign investors could trigger short covering in equities, with banking stocks likely to outperform.

Vijayakumar added that sectors benefiting from lower crude prices, including paints, tyres and adhesives, could remain in focus, while capital goods companies with exposure to West Asia may also gain if peace returns to the region.