Sensex surges 1,400 pts, Nifty above 22,900: US-Iran ceasefire report among key factors behind market rally

Sensex, Nifty rebounded following a media report claiming Mojtaba Khamenei has agreed to negotiate with the US; however, there is no official confirmation from Iran yet.

 

The equity benchmark indices Sensex and Nifty rebounded by more than 2 percent on Tuesday, on media report from Al Arabiya claiming Mojtaba Khamenei has agreed to negotiate with the US, however, there is no official confirmation from Iran yet.

 

The domestic markets also tracked gains in global markets after US President Donald Trump announced a temporary halt on strikes targeting Iranian energy infrastructure.

 

At 1:29 pm, the Sensex was up 1,655.97 points or 2.28 percent at 74,352.36, and the Nifty was up 510.35 points or 2.27 percent at 23,023.00. About 2932 shares advanced, 945 shares declined, and 131 shares unchanged.

 

All 16 major sectoral indices traded in the green. The broader Nifty smallcap100 and Nifty midcap100 rose 0.77 percent and 1.10 percent, respectively.

 

Among stocks, HDFC Bank gained 1.1 percent after appointing external law firms to review the resignation letter of former part-time chairman Atanu Chakraborty. The stock had declined 11.7 percent over the last three sessions, eroding about Rs 1,35,000 crore in market value following his abrupt exit.

Olectra Greentech and JBM Auto rose 7.5 percent and 8.7 percent, respectively, while Ashok Leyland added 1.3 percent after the government said it would provide 10,000 air-conditioned e-buses to 116 cities by the end of 2027.

Key factors behind market rise

1) Iran agrees to negotiate: Iran’s new Supreme Leader, Mojtaba Khamenei, has agreed to negotiate with the United States and reach an agreement, suggesting a potential diplomatic opening amid ongoing hostilities, a report by Al Arabiya, citing Israeli media, has claimed. The report comes as US President Donald Trump said there have been talks between Washington and Tehran over the past day that produced what he described as “major points of agreement”.

2) Value buying: Domestic markets tracked gains in Asian peers after Trump postponed the bombing of Iran’s power grid, easing concerns over a deeper energy shock. The Nifty50 had declined 2.5 percent on Monday and is down 10.6 percent since the US-Israeli conflict involving Iran escalated on February 28.

The Indian benchmarks have fallen about 9.5 percent this month amid elevated crude prices and concerns over energy supplies, which also triggered foreign outflows.

3) Firm global cues: Asian markets rebounded, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng trading higher. US markets ended in positive territory on Monday. Wall Street futures have also trimmed their losses to trade flat, indicating a firm start.

4) India VIX declines: The volatility index fell over 4 percent to 25.60, indicating reduced near-term uncertainty among investors.

5) Easing geopolitical concerns: Trump said he has extended the deadline for Iran to reopen the Strait of Hormuz and will hold off strikes on Iranian energy sites for five days. Iran, however, denied any engagement in negotiations with the US.

“The positive momentum appears largely driven by a sudden shift in global sentiment following signs of potential de-escalation in the ongoing Middle East conflict,” said Hariprasad K, Research Analyst and Founder, Livelong Wealth.

“This development has raised expectations that the conflict — which had elevated crude oil prices and triggered recessionary fears — may be approaching a phase of de-escalation,” he added.

6) Easing crude: Brent crude, the global oil benchmark, traded 4.16 percent higher at USD 104.1 per barrel, easing from the USD 110 level seen earlier.

“The easing in oil has been triggered by a temporary de-escalation in geopolitical tensions after the postponement of planned strikes,” said Ponmudi R, CEO of Enrich Money.

Technical Outlook

Anand James, Chief Market Strategist at Geojit Investments, said sustained trades above 22,680 would signal strength in Nifty, while dips are likely to remain limited in the near term. He added that a break below 22,470 could open the downside towards the 22,200–22,000 zone, while swings around 22,560 may persist in the interim.

 

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not sharechart. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.