Markets Open Higher: Falling Oil, Stronger Rupee And US-Iran Deal Hopes Boost Sentiment

Indian benchmark indices opened marginally higher on Friday, supported by declining crude oil prices, a strengthening rupee and growing optimism that a potential US-Iran agreement could ease pressure on India's economy and financial markets.

At around 9:30 am, the BSE Sensex was trading 98.09 points higher at 75,965.89, while the NSE Nifty50 gained 16.20 points to 23,923.35. Positive sentiment also extended to the broader market, with the Nifty Midcap 100 and Nifty Smallcap 100 rising 0.21% and 0.38%, respectively.

The latest gains came as crude oil prices continued to soften amid expectations of progress in negotiations between the United States and Iran. Brent crude fell 1.12% to $92.66 per barrel, slipping below the key $93 mark, while WTI crude declined 1.17% to $87.85 per barrel. Lower oil prices are seen as a major positive for India, which imports the majority of its crude oil requirements.

The rupee also offered support to market sentiment, appreciating 0.15% to open at 95.55 against the US dollar compared with its previous close of 95.69. Meanwhile, India VIX declined 1.16%, indicating easing volatility and improving investor confidence.

IT Stocks Lead The Rally

Technology shares emerged as the strongest performers in early trade. The Nifty IT index advanced 2.07%, driven by gains in heavyweight stocks. Infosys topped the Sensex gainers with a rise of 3.09%, while HCL Technologies gained 1.52%, Tata Consultancy Services added 1.48% and Tech Mahindra rose 1.06%.

Realty, pharmaceutical and PSU banking stocks also attracted buying interest. Nifty Realty climbed 0.61%, while Nifty Pharma and Nifty PSU Bank gained 0.59% and 0.58%, respectively.

On the other hand, select frontline stocks witnessed profit booking. Bharti Airtel fell 1.33%, Bharat Electronics declined 0.98%, Adani Ports slipped 0.90% and HDFC Bank dropped 0.80%.

Falling Crude Improves Market Outlook

According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the decline in crude oil prices is emerging as one of the most significant positives for the Indian economy and markets.

"There are some positive trends on the economic and market front. Brent crude declining to below $93 is a big positive. This has happened on expectations of a deal between US and Iran. Therefore, if a deal happens crude can decline further, thereby improving India's macros which have been under pressure from the energy crisis," he said.

Vijayakumar added that lower crude prices could help stabilise the rupee and reduce pressure from foreign portfolio investor outflows, which have weighed on domestic equities in recent months.

He also pointed to better-than-expected March quarter earnings, particularly in financials, automobiles and metals, as another supportive factor for the market. According to him, sectors such as defence, capital goods, renewable energy, financials and pharmaceuticals are well-positioned for growth in FY27, while investors continue to accumulate quality digital platform companies during market corrections.

With crude prices easing, volatility cooling and corporate earnings remaining resilient, market participants will closely track developments in US-Iran negotiations for further direction.