The Sensex rallied over 300 points and Nifty neared 23,800 as crude oil prices fell nearly 5%, easing inflation worries and lifting sentiment across sectors. At around 9:35 am, the BSE Sensex rose 339 points or 0.45% to 75,657.39, while the NSE Nifty gained 106.85 points or 0.45% to trade at 23,765.85, moving closer to the key 23,800 level. The rally was triggered by Brent crude trading near $105 per barrel after falling nearly 5%, as investors reacted to comments from US President Donald Trump suggesting that negotiations with Iran were entering the final stages. Trump said talks aimed at ending the conflict were progressing but also warned that military action remained possible if discussions fail. While the mixed messaging kept traders cautious, markets interpreted the developments as a sign of possible easing in geopolitical tensions.
Grasim Industries Ltd emerged as the top performer, climbing 3.01% in early trade and maintaining its position as the top Nifty gainer. InterGlobe Aviation gained 2.54%, while Siemens Energy India, Bharat Electronics, Asian Paints and Tata Steel also traded higher. Other notable gainers included Larsen & Toubro Ltd at ₹3,970.00 (+1.52%), Apollo Hospitals Enterprise Ltd at ₹8,198.50 (+1.49%), and Tata Steel Ltd at ₹209.75 (+1.32%). Shriram Finance Ltd and Hindalco Industries Ltd also featured among the top gainers with gains of 1.25% and 1.22% respectively. The Nifty Smallcap index advanced 1.10%, reflecting improved risk appetite among investors.
The Indian rupee snapped its eight-day losing streak and opened sharply higher at 96.30 against the US dollar compared with Wednesday's close of 96.82, gaining 52 paise after persistent pressure in recent sessions. The Reserve Bank of India announced a $5 billion buy-sell swap auction for a three-year tenor scheduled for May 26 to inject rupee liquidity into the banking system. India's benchmark 10-year bond yield eased to 7.04% from 7.07% in the previous session as lower crude prices eased inflation concerns. All major NSE sectoral indices traded in positive territory, with smallcaps leading gains and defensive sectors remaining relatively muted. Nifty IT rose 0.15%, Nifty Oil & Gas gained 0.16% and Nifty Pharma moved up 0.20%.
The overall market sentiment remained positive with broad-based gains across sectors, supported by the sharp fall in crude oil prices and improving sentiment after signs emerged that the US and Iran may be moving closer towards a deal to ease the prolonged West Asia conflict. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said recent market movements indicate a buy-on-dips structure remains intact. "The recent market movements indicate a buy on dips market construct. Buy on dips strategy has been working well. It appears that the sustained selling by FPIs has also stopped since they were buyers on a couple of days recently," he said. Vijayakumar noted that corrections in South Korea's KOSPI and Taiwan's TAIEX may eventually benefit India if foreign investors start reallocating funds. He emphasized that lower crude prices and stability in the rupee remain critical variables for markets, while noting that quarterly earnings have remained largely healthy so far, although the impact of the energy crisis could begin reflecting in Q1 FY27 numbers.
