Sensex rises over 600 pts, Nifty tops 24,390 in early trade on Iran war optimism

Indian equity benchmarks opened higher on Thursday, extending the previous session’s rally, as easing crude oil prices and renewed hopes of a US-Iran diplomatic breakthrough lifted investor sentiment.

The Sensex surged 612.98 points, or 0.78 per cent, to 78,724.22 as of 9:25 am, after opening at 78,677.56. It touched an intraday high of 78,700.60 and a low of 78,480.99.

The broader Nifty 50 advanced 167.30 points, or 0.69 per cent, to 24,398.60, with strong market breadth. As many as 39 stocks advanced, while 11 declined.

West Asia cues, oil decline support sentiment

Markets took cues from global developments after reports indicated a possible thaw in tensions between the United States and Iran, raising hopes of a de-escalation in the ongoing conflict in West Asia.

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Brent crude prices slipped below $95 per barrel amid expectations that Iran could ease restrictions on shipping through the Strait of Hormuz — a critical oil transit chokepoint. Lower oil prices are seen as a major positive for India, which relies heavily on imports, as they help ease inflationary pressures and improve corporate margins.

Investor sentiment was also supported by foreign institutional investors (FIIs), who turned net buyers in the previous session, signalling a tentative return of risk appetite after weeks of outflows triggered by geopolitical uncertainty.

Financials, IT stocks lead gains

The rally was led by IT and financial stocks, with heavyweights posting strong gains.

Infosys climbed nearly 1.7 per cent, while Tata Consultancy Services gained over 1.2 per cent. Tech Mahindra and HCL Technologies also traded firmly higher.

Among financials, Bajaj Finance rose over 1.7 per cent, while ICICI Bank, HDFC Bank and State Bank of India posted steady gains.

Engineering major Larsen & Toubro and aviation player InterGlobe Aviation also contributed to the upside.

Select laggards cap upside

Despite the broad-based rally, some heavyweight stocks capped gains. Reliance Industries was marginally lower, while Hindustan Unilever, Asian Paints and HCL Technologies traded in the red.

Metal and energy stocks showed mixed trends, reflecting lingering uncertainty over supply disruptions despite easing oil prices.