Markets Set to Open Strong on Friday; Gift Nifty Up 0.06% as US-Iran Ceasefire Extension Deal Lifts Sentiment

Mumbai, May 29: Domestic equity markets are poised to open on a positive note on Friday as a potential breakthrough in the US-Iran conflict lifted global risk appetite overnight, with Reuters reporting that the two countries have reached an agreement to extend their ceasefire by 60 days and lift restrictions on shipping through the Strait of Hormuz — though US President Donald Trump has yet to formally approve the deal and Iranian state media cautioned that the text had not been finalised.

Gift Nifty futures were trading at 23,887.00, up 13.50 points or 0.06%, as of 7:13 am on May 29, pointing to a steady-to-positive opening for the Sensex and Nifty 50 when domestic markets resume after Thursday’s Bakri Id holiday — with the modest Gift Nifty premium reflecting cautious optimism rather than euphoria given the deal’s unconfirmed status.

Asian Markets

Asian markets were broadly firmer on Friday morning, led by Japan’s Nikkei 225 which surged 1.91% to 65,929.94 and Australia’s ASX All Ordinaries gaining 1.05% to 8,912.10, reflecting strong risk-on sentiment on the ceasefire deal reports. Malaysia’s KLCI rose 0.53% to 1,693.87, while Shanghai’s Composite and Hong Kong’s Hang Seng were trading without a clear directional change, though the overall Asian tone remained constructively positive. The regional markets took their cue from Wall Street’s overnight advance, with the Nikkei’s nearly 1,237-point gain underscoring the depth of optimism around a potential end to the Iran war.

US Markets

US markets closed on a broadly positive note on Thursday, with the Nasdaq Composite advancing 0.91% to 26,917.47 and the S&P 500 gaining 0.58% to 7,563.63. The Dow Jones Industrial Average edged up a modest 0.05% to 50,668.97, while the NYSE Composite rose 0.15% to 23,302.26 and the S&P/TSX Composite added 0.31% to 34,517.70.

Iran War

Reuters reported, citing four sources familiar with the matter, that the US and Iran have reached an agreement that would extend the ceasefire for another 60 days and allow unrestricted traffic to flow through the Strait of Hormuz — a strategic waterway through which roughly one-fifth of the world’s oil and liquefied natural gas supply transits — while negotiators tackle complex issues including Iran’s nuclear programme. The deal, first reported by Axios, would also require the US to lift its blockade of Iranian ports and ease some sanctions on Iranian oil sales, representing the most significant step toward peace since the conflict began on February 28. US Vice President JD Vance told reporters in Washington that talks were very close, saying “I feel pretty good about it,” though he stopped short of confirming a finalised agreement. However, Iran’s Tasnim news agency, citing a source close to the negotiating team, said the text had not been confirmed, and the Trump administration has on several previous occasions indicated a deal was imminent only for Tehran to dispute the claim. The news nonetheless sent oil prices lower on hopes of a potential Hormuz reopening, with Reuters noting that the reports triggered immediate market reactions across energy and equity asset classes.

Oil Prices

Oil futures fell slightly on hopes for a potential deal to extend a US-Iran ceasefire, although remarks from Vice ​President JD Vance that the nations were “close” to reaching a deal ‌but “not there yet” kept a floor under prices, according to Reuters. Brent crude futures for July , which expire on Friday’s settlement, was down 35 cents, or 0.37%, at $93.36 a barrel at ​0105 GMT. U.S. oil futures fell 63 cents, or 0.71%, to $88.27 ​a barrel. The more actively traded August Brent futures fell 46 ⁠cents, or 0.50%, to $92.24. Prices were down more than 8% for the week ​with Brent hitting a low of $87.11 versus last week’s high of $109.47.

Wednesday Session of Sensex, Nifty

Indian benchmark indices ended largely flat in Wednesday’s choppy session, with the Sensex declining 141.90 points or 0.19% to 75,867.80 and the Nifty 50 slipping just 6.55 points or 0.03% to 23,907.15 — holding above the key 23,900 support level despite broad selling in banking, IT and FMCG stocks. The session saw 2,168 shares advance against 1,877 declines on the NSE, reflecting a positive underlying breadth that stood in contrast to the muted headline index moves. HDFC Bank, HDFC Life, Wipro, ITC and ONGC were among the notable laggards, while strong buying in auto, metals, media and power stocks prevented a sharper fall. Markets were closed on Thursday, May 28 on account of Bakri Eid.

Source:

• nseindia.com