Markets Open on a Positive Note; Sensex Up 370 points; Trump's Wait-and-Watch Stance on Iran Lifts Sentiment 

Mumbai, May 21: Domestic equity markets opened on a firm note on Thursday, with the BSE Sensex and NSE Nifty 50 advancing decisively in early trade as global markets drew comfort from US President Donald Trump’s signal that Washington was willing to wait a few days for the “right answer” from Iran before resuming military strikes a stance that, while far from a resolution, temporarily dialled down the threat of imminent escalation that had rattled markets through much of the week.

The BSE Sensex opened at 75,688.37, up 369.98 points or 0.49% from its Wednesday close of 75,318.39, while the NSE Nifty 50 rose 128.25 points or 0.54% to 23,787.25 as of 9:18 am a broad-based opening advance that reflected the positive overnight cues from a resurgent Wall Street and a sharply higher Nikkei. Iran’s Revolutionary Guards, however, warned that any renewed American aggression would trigger a regional war extending beyond the Middle East, a reminder that the ceasefire remains fragile and the diplomatic path to a deal narrow.

Gainers & Losers

Among the Nifty 50 gainers in early trade, Grasim Industries led with an LTP of ₹3,079.40, up 3.65% from its previous close of ₹2,971.10, while IndiGo gained 2.12% to ₹4,355.20 from ₹4,264.60 and BEL rose 2.11% to ₹422 from ₹413.30. Eternal advanced 1.71% to ₹247.50 from ₹243.34, and Shriram Finance gained 1.55% to ₹937.75 from ₹923.45.

The losers list was thin and shallow on a broadly positive morning, with ONGC slipping 0.50% to ₹296.80 from its previous close of ₹298.30, and TCS edging down a marginal 0.01% to ₹2,327.10 from ₹2,327.40 the near-flat TCS reading effectively confirming that the session’s selling pressure was negligible across the board.

Broader & Sectoral Markets

Broader market indices opened in step with the benchmarks, with the Nifty Midcap 100 gaining 0.79% to 61,806.35, the Nifty Smallcap 100 rising 0.90% to 18,030.90, and the Nifty 500 advancing 0.76% to 22,749.20 a uniform lift that reflected broad risk-on positioning rather than selective sector rotation.

In the sectoral space, Nifty Realty was the standout, jumping 1.49% to 778.45, while Nifty PSU Bank surged 1.22% to 8,068.45 and Nifty India Defence advanced 1.43% to 9,119.60 the defence index’s gains particularly notable given the continued geopolitical tension that has kept the sector in focus all week. Nifty Auto gained 0.84% to 26,132.25 and Nifty Bank rose 0.90% to 54,042.40, while even the laggard Nifty IT managed a modest 0.11% advance to 29,217.15 as overnight gains on the NASDAQ provided some tailwind to technology stocks.

Middle East Conflict

Trump’s wait-and-watch posture injected a degree of diplomatic breathing room into markets, but his warning that the situation was “right on the borderline” and that the US was “all ready to go” underscored that the ceasefire remains on a hair-trigger.

Iran’s latest peace proposal demanding control of the Strait of Hormuz, compensation for war damage, lifting of sanctions and withdrawal of US troops largely repeats terms previously rejected by Washington, leaving little room for optimism about a quick resolution. Pakistan’s interior minister continued to shuttle messages between the two sides from Tehran, with both nations officially professing a desire for a negotiated outcome even as their public statements reflect deep mutual suspicion.

India VIX eased 4.67% to 17.58 on Thursday morning, signalling a meaningful decline in near-term volatility expectations as the market read Trump’s pause as a short-term positive.

Asian & US Markets

Asian markets were broadly higher on Thursday morning, with the Nikkei 225 leading the regional surge with a 3.53% jump to 61,917.72 its sharpest single-session gain in weeks as Japanese investors reacted strongly to the easing of immediate Iran escalation fears. The Hang Seng Index gained a modest 0.04% to 25,661.06 and the Shanghai Composite edged up 0.19% to 4,170.13, while the S&P ASX All Ordinaries rose 1.69% to 8,864.10. US markets closed sharply higher on Wednesday, with the Dow Jones Industrial Average surging 1.31% to 50,009.35 and the NASDAQ Composite jumping 1.54% to 26,270.36. The S&P 500 gained 1.08% to 7,432.97, with the broad-based rally spanning technology, energy and financial stocks.

Oil Prices

Oil prices rebounded on Thursday after two sessions of sharp losses, with Brent crude rising 0.77% to $105.83 a barrel and US West Texas Intermediate advancing 0.99% to $99.23 as lingering supply concerns and a draw in US crude inventories reignited buying. Both benchmarks had dropped more than 5.6% on Wednesday after Trump flagged that Iran negotiations were in their “final stages”, but the rebound reflects the market’s scepticism about whether a deal is genuinely close particularly after Iran announced the new “Persian Gulf Strait Authority” and declared a controlled maritime zone in the Strait of Hormuz. With the Strait remaining mostly closed and any post-deal supply restoration expected to be gradual, analysts warned that crude prices were unlikely to fall sharply even in the event of a peace agreement.

Closing on Wednesday

Indian equity benchmarks staged a sharp recovery on Wednesday to close marginally higher after opening deeply in the red, with the BSE Sensex rising 117.54 points or 0.16% to 75,318.39 and the NSE Nifty 50 gaining 41 points or 0.17% to settle at 23,659 reversing losses that had briefly pushed the Nifty below 23,400 at the session’s open. The rebound was led by strong buying in Reliance Industries, oil and gas, energy, auto and capital goods stocks, with broader markets outperforming as the Nifty Midcap 100 rose nearly 0.5% and smallcap shares also traded with a positive bias. India VIX declined more than 1% by Wednesday’s close, and market breadth was mixed with 2,008 advances against 1,920 declines on the NSE, pointing to a session that ended with stability restored but conviction still tentative.

Source:

• nseindia.com
• https://www.nseindia.com/market-data/top-gainers-losers
• https://www.nseindia.com/market-data/live-market-indices
• bseindia.com