Sensex Surges 330 Points at Open as US-Iran Talks Show Cautious Progress

Mumbai, May 22: Domestic equity markets opened on a positive note on Friday morning, with both benchmark indices advancing in early trade as investors drew cautious optimism from signs of incremental progress in US-Iran peace negotiations, even as the two sides remain deadlocked on core issues.

The BSE Sensex climbed 330.82 points or 0.44% to 75,514.18 in early trade, while the Nifty 50 rose 101.55 points or 0.43% to 23,756.25, building on Thursday’s flat close as global risk sentiment improved modestly overnight. A recovery in crude oil prices from recent lows, a steady Wall Street finish, and firm Asian cues provided additional tailwinds, though gains were capped by persistent weakness in IT and FMCG stocks that kept the broader advance in check.

Gainers & Losers

Among Nifty 50 gainers in early trade, SBI Life Insurance (SBILIFE) led with its LTP at ₹1,887.80 against a previous close of ₹1,859.90, up 1.50%, followed by Eicher Motors (EICHERMOT) at ₹6,994 versus ₹6,892, up 1.48%, ICICI Bank (ICICIBANK) at ₹1,256 against ₹1,242.80, up 1.06%, Larsen & Toubro (LT) at ₹3,931.20 versus ₹3,928.50, up 1.05%, and HDFC Bank (HDFCBANK) at ₹766.90 against ₹759.15, up 1.02%.

On the losing side, Max Healthcare (MAXHEALTH) was the sharpest faller with its LTP at ₹1,036 versus a previous close of ₹1,091.10, down 5.05%, followed by ITC at ₹305.10 against ₹308.05, down 0.96%, Tech Mahindra (TECHM) at ₹1,410.20 versus ₹1,420, down 0.69%, Infosys (INFY) at ₹1,173.50 against ₹1,181.20, down 0.65%, and Power Grid (POWERGRID) at ₹297.80 versus ₹299.55, down 0.58%.

Broader & Sectoral Markets

Among broader market indices, the Nifty Midcap 100 advanced 0.14% to 61,384.50, the Nifty Midcap 150 gained 0.16% to 22,516.10, and the Nifty Microcap 250 rose 0.28% to 23,306.05, reflecting healthy participation beyond large-caps. The Nifty Smallcap 100, however, slipped marginally by 0.02% to 17,978.70, and the Nifty Smallcap 50 edged down 0.10% to 8,849.45.

On the sectoral front, Nifty Private Bank was among the top gainers, rising 0.82% to 26,202.30, followed by Nifty Bank up 0.74% to 53,836.75 and Nifty Financial Services advancing 0.74% to 25,423.80. Nifty IT fell 0.50% to 28,876.70, Nifty Media slipped 0.85% to 1,383.25, and Nifty Realty declined 0.92% to 768.00, emerging as the session’s sectoral laggards.

Middle East Conflict

The US and Iran remain at loggerheads over Tehran’s stockpile of highly enriched uranium and control over the Strait of Hormuz, with Washington insisting the uranium cannot remain in Iranian hands and rejecting any tolling regime on the strait. US Secretary of State Marco Rubio acknowledged “some good signs” in talks but cautioned against excessive optimism, while a senior Iranian source told Reuters that gaps have narrowed without a deal being reached. Iran’s Supreme Leader Ayatollah Mojtaba Khamenei has reportedly issued a directive barring the uranium from being sent abroad, hardening one of the key sticking points. President Trump has kept the option of resumed strikes on the table, warning he will act if he does not receive the “right answers” from Tehran’s leadership.

Asian & US Markets

Asian markets presented a stronger note on Friday morning, with Japan’s Nikkei 225 surging 2.29% to 63,094.61 and Hong Kong’s Hang Seng gaining 0.43% to 25,496, while Indonesia’s Jakarta Composite fell sharply by 3.54% to 6,094.94. US markets ended Thursday on a steady footing, with the Dow Jones gaining 0.55% to 50,285.66, the Nasdaq adding 0.09% to 26,293.10, and the S&P 500 edging up 0.17% to 7,445.72.

Oil Prices

Oil prices recovered on Friday after a sharp pullback the previous session, with Brent crude futures rising $2.38 or 2.3% to $104.96 a barrel and US West Texas Intermediate climbing $1.73 or 1.8% to $98.08. Both benchmarks had shed roughly 2% on Thursday, hitting their lowest closing levels in nearly two weeks amid uncertainty over a US-Iran deal. Despite Friday’s bounce, both contracts remained on course for a weekly loss as geopolitical risk premiums stayed elevated.

Thursday Closing

Indian benchmark indices ended virtually unchanged on Thursday after a choppy session, with the Sensex slipping 135.03 points or 0.18% to 75,183.36 and the Nifty 50 declining just 4.30 points or 0.02% to 23,654.70. Market breadth remained firmly positive with 2,307 advances against 1,688 declines. Realty and healthcare led sectoral gains, while IT and FMCG shares were the biggest drags on the session.

Source:

• nseindia.com
• bseindia.com