Sensex rises 500 points, Nifty above 23,750 as oil price dips on renewed US-Iran peace deal hopes

Indian benchmark indices witnessed a strong rally on Friday after international crude oil prices declined amid hopes of renewed diplomatic engagement between the United States and Iran. The positive global sentiment pushed investors towards equities, helping the Sensex climb more than 500 points while the Nifty crossed the 23,750 mark during trading.

The rally was largely driven by banking and financial shares, with major lenders recording solid gains as investors reacted positively to lower energy prices and improving market confidence. Analysts said easing crude prices could reduce inflationary pressure on India’s economy, which remains heavily dependent on oil imports.

Global oil markets softened after reports suggested fresh discussions between Washington and Tehran could help reduce tensions in the Middle East. Investors believe any improvement in relations may lower the risk of supply disruptions in key oil-producing regions, particularly around the Strait of Hormuz, a crucial route for global crude shipments.

For India, a decline in oil prices is considered economically beneficial as it can reduce import bills, strengthen the rupee and improve overall market sentiment. Lower fuel costs also ease concerns surrounding inflation and interest rates, factors closely monitored by investors and policymakers.

Apart from banking stocks, automobile and aviation companies also witnessed buying interest as falling crude prices are expected to lower operational costs for fuel-dependent industries. However, some technology and IT shares remained under pressure due to concerns over weak global demand and continued uncertainty in overseas markets.

Market experts noted that domestic investors continued to support the rally despite cautious participation from foreign institutional investors, who remained selective amid ongoing geopolitical developments. Traders are now closely watching upcoming updates related to US-Iran negotiations, global crude trends and signals from central banks for further market direction.

Meanwhile, global equity markets also traded positively, with Asian and US indices gaining ground as falling oil prices improved investor appetite for riskier assets. Analysts, however, warned that market volatility could continue if geopolitical tensions escalate again or if crude prices rebound sharply in the coming weeks.