The Indian stock market rallied sharply on Friday, with Sensex and Nifty gaining 2% each, as increasing hopes of Iran and the US concluding their much-awaited peace deal over the weekend, easing crude oil prices and improving global sentiment, lifted investor confidence. Sensex surged over 1,695 points to close at 75,527.95, while Nifty 50 jumped over 461 points to end the session at 23,622.90. The rally added around Rs 10 lakh crore to the combined market capitalisation of BSE-listed companies, taking the total market value to around Rs 462 lakh crore.
"Indian equities may witness an uptrend next week as easing concerns surrounding the US-Iran conflict improve global risk sentiment. Reports indicating that negotiations between the two nations are nearing completion have reduced fears of prolonged disruptions to global crude oil supplies, pushing oil prices below the $90 per barrel mark. The sharp market recovery suggests that investors are beginning to price in a more favourable geopolitical outcome. While a formal agreement remains pending, the moderation in crude oil prices and appreciation in the rupee to 94.9 against the US dollar have improved the near-term outlook for domestic equities. Markets witnessed a sharp upmove on Friday, supported by optimism surrounding a potential US-Iran agreement and the subsequent decline in crude oil prices," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services.
