Indian stock markets opened higher on Friday amid optimism over a potential US-Iran peace deal. As of 9:17 AM, the Nifty50 gained 36.90 points, or 0.15%, to 23,957.75, while the Sensex rose 219.95 points, or 0.29%, to 76,087.75. The Nifty MidCap index traded 0.19% higher, while the Nifty SmallCap index advanced 0.37%, indicating broad-based market participation. This positive opening comes after the Sensex declined 142 points, or 0.19%, to close at 75,867.80 and the Nifty 50 slipped 7 points, or 0.03%, to settle at 23,907.15 in the previous session, marking their second consecutive session of losses. Gift Nifty was trading near the 23,889 mark, a premium of around 16 points over the previous close of Nifty futures, indicating cautious optimism for the domestic market opening.
The Nifty IT index surged nearly 3% to emerge as the top gainer, significantly outperforming other sectors. The Nifty PSU Bank and the Nifty Pharma indices also outperformed, while the Nifty Metal, the Nifty FMCG, and the Nifty Chemical indices lagged the broader market. This sectoral divergence reflects selective investor interest, with technology stocks benefiting from positive global sentiment. The strong IT sector performance comes as Gift Nifty was trading near the 23,889 mark, a premium of around 16 points over the previous close of Nifty futures, indicating cautious optimism for the domestic market opening.
Market sentiment improved after reports suggested that the US and Iran have agreed to renew a 60-day truce as both sides work toward a broader agreement to end the conflict. U.S. Vice President JD Vance reportedly said the two countries were "close" to finalising a deal, though discussions were still ongoing. The truce deal is awaiting approval from US President Donald Trump, with reports indicating both countries have agreed to renew negotiations. This development has boosted investor confidence and contributed to the positive opening in Indian markets. The optimism follows US stock markets ending higher on Thursday after reports of progress in the U.S.-Iran peace negotiations, with the S&P 500 gaining 0.58% to end at 7,563.63 and the Nasdaq Composite surging 0.91% to settle at 26,917.47.
Asian markets traded higher, providing positive cues for Indian equities. Wall Street ended in positive territory overnight, with the S&P 500 and Nasdaq Composite hitting record closing highs. Among major technology stocks, Nvidia rose 0.78%, AMD rallied 4.55%, Microsoft gained 3.47%, Apple added 0.53% and Marvell Technology climbed 3.09%. The positive global sentiment has helped offset earlier concerns about MSCI index rebalancing-related flows, estimated to have triggered foreign passive outflows worth around USD 800 million to USD 1 billion from Indian equities. Foreign Institutional Investors remained net sellers, selling equities worth ₹1,042.70 crore, while Domestic Institutional Investors purchased shares worth ₹3,821 crore.
Technically, Nifty 50 continues to hold above its crucial short-term support zone of 23,800 to 23,865, which includes the 20-day moving average, recent breakout area and May 25 gap zone. A sustained move below this range could weaken the near-term structure and drag the index towards 23,684, where the 50-day moving average is placed, followed by the next major support near 23,400. On the upside, the 24,000 level remains a crucial hurdle. A decisive close above this mark may improve market sentiment and open the path towards 24,126 and 24,200 levels. Companies scheduled to announce quarterly earnings on May 30 include Ahluwalia Contracts (India), Linde India, PTC Industries, Som Distilleries & Breweries, Suraj Estate Developers, Suraj Industries, Titagarh Rail Systems, TTK Healthcare, Uflex and Veranda Learning Solutions.
