Markets Jump in Early Trade as US-Iran Talks Boost Sentiment

Mumbai, March 25: Indian equity markets opened on a strong note on Wednesday, tracking positive global cues, as the BSE Sensex jumped 844 points (1.17%) and the NSE Nifty rose 290 points (1.25%) in early trade. Investor sentiment was lifted after the United States signalled progress in negotiations with Iran, raising hopes of easing geopolitical tensions.

US President Donald Trump said that Washington and Tehran are engaged in active discussions, with reports indicating a 15-point peace plan and a possible one-month ceasefire.

Markets Outperform Benchmarks

Broader markets outperformed the benchmarks, reflecting improved risk appetite. The NIFTY Midcap 100 gained 2.14%, while the NIFTY Smallcap 100 rose 2.52%. Strength was also visible in the NIFTY MidSmallcap 400 and NIFTY Microcap 250 indices, both advancing over 2%. Meanwhile, volatility eased marginally, with India VIX slipping 0.32% to 24.66, signalling reduced market anxiety.

Sectorally, most indices traded in the green. NIFTY Realty led gains with a sharp 3.48% rise, followed by strong buying in consumer durables, financial services and metals. Banking stocks remained firm, with private and PSU bank indices gaining around 1.7% each. Defensive sectors such as FMCG and pharma posted moderate gains, while oil & gas saw limited upside. However, IT stocks lagged, with the NIFTY IT index slipping 0.49% despite the broader rally.

Global Cues

Iran informed the UN Security Council and the International Maritime Organization that “non-hostile vessels” can pass through the Strait of Hormuz, provided they coordinate with Iranian authorities. Reports also suggested that the US has shared a 15-point proposal aimed at ending the conflict, highlighting efforts to de-escalate tensions.

Asia-Pacific Markets

Asian markets traded higher, supported by improving sentiment. Japan’s Nikkei 225 surged 2.61%, while Hong Kong’s Hang Seng Index gained 0.70%. China’s Shanghai Composite rose 1.13%, and Indonesia’s Jakarta Composite added 1.20%. Australia’s S&P/ASX All Ordinaries index also climbed nearly 2%, indicating broad-based strength across the region.

US Markets and Commodities

US markets ended lower overnight, with the S&P 500 and Dow Jones Industrial Average slipping 0.37% and 0.18%, respectively, while the Nasdaq Composite fell 0.84%.

Oil prices declined sharply in Asian trade after signs of progress in negotiations. Brent crude dropped 6.6% to $97.56 a barrel, while US crude fell over 5.5% to $87.20. In contrast, bullion prices moved higher as bond yields and the dollar index weakened amid ceasefire expectations.

Source: 

• https://www.bseindia.com/index.html
• https://www.nseindia.com/