Indian stock markets staged a remarkable rebound on Friday, with Sensex surging over 1,695 points to close at 75,627.02 and Nifty50 jumping over 461 points to end at 23,622.90, effectively erasing previous session losses. According to Devdiscourse, the rally added around ₹7 lakh crore to the combined market capitalisation of BSE-listed companies, taking the total market value to around ₹460 lakh crore. The upward trajectory followed improved global risk sentiment, spurred by potential peace breakthroughs between the United States and Iran. US President Donald Trump's indication of a possible peace agreement as early as this weekend, paired with encouraging remarks from Iranian officials, sparked optimism of de-escalation in the prolonged conflict. This shift alleviated concerns surrounding potential disruptions to global energy supplies.
As reported by The Economic Times, Nifty closed above its 20-day EMA for the first time since May 2026, signaling an improvement in short-term momentum. The daily RSI has rebounded sharply from lower levels and is now trading above the 50 mark while moving above its 9-day average. The Daily Stochastic has generated a bullish crossover, with multiple indicators turning favorable simultaneously. Analyst Sudeep Shah from SBI Securities expects the index may extend its upward move towards 23,800, followed by the psychological 24,000 mark, with downside support at 23,350–23,300. Ajit Mishra, SVP of Religare Broking Limited, observed that the Nifty's firm recovery after defending the 23,000 support zone and reclaiming the 23,500 resistance area aligns with the 20-day EMA, suggesting potential upward movement. The index ended last week with gains of 1.1% and snapped its two-week losing streak amid renewed hopes of US-Iran war resolution.
According to the analysis from The Economic Times, Bank Nifty was up nearly 5% and is comfortably trading above all its key moving averages. The 20-day and 50-day EMAs have started turning higher, reflecting an improvement in the underlying trend. Notably, the daily RSI has surged above the 60 mark for the first time since February 2026, highlighting a significant pickup in bullish momentum. Analysts expect Bank Nifty to extend its upward trajectory and test the 57,500 level, followed by 58,300 in the near term. Market analyst Vipin Dixena attributed the rally to global risk appetite improvement, highlighting significant contributions from banking and financial stocks, boosted by the Reserve Bank of India's recent liquidity initiatives.
As reported by Devdiscourse, investor enthusiasm was evident across sectors, as all 30 Sensex constituents finished positively. Nifty Realty and Nifty Financial Services Ex-Bank led sectoral gains, rising over 3% each. Notably, Tata Steel, IndiGo, Larsen & Toubro, State Bank of India, and Tech Mahindra saw gains up to 3%. Broader market indices, including the Nifty Midcap 100 and Nifty Smallcap 100, grew nearly 2%, highlighting widespread investor involvement. The global markets echoed this optimism, with Gift Nifty rising about 1.5% in early trade and Asian markets like South Korea, which surged nearly 8%, and Japan, with a sharply higher Nikkei, following suit.
The prospect of a US-Iran truce triggered a notable decrease in crude oil prices, providing further relief to investors. Brent crude futures plummeted approximately 4%, trading below $87 per barrel, while WTI crude fell over 4%, settling around $83 per barrel. However, West Texas Intermediate crude futures closed 3.2% lower at $84.88 a barrel after President Donald Trump warned in a Truth Social post that Iran "better get their act together" even as a supposed deal between the U.S. and Iran was on the table. Lower oil prices are viewed as a boon for India, a major crude importer, reducing inflationary stress and enhancing its fiscal outlook. As per Devdiscourse, this positive sentiment was reflected in the stock markets, with the rally indicating a cautiously bullish sentiment closing the week, showing renewed investor confidence in Indian equities.
