MUMBAI (Reuters) – Indian equity markets climbed for a record fifth straight trading day on Thursday, as diplomatic developments between the United States and Iran helped alleviate regional tensions, countering macroeconomic headwinds from rising U.S. Treasury yields and a resilient dollar. The 30-share BSE Sensex advanced 254.36 points (0.33%) to settle at 77,409.98, while the broader NSE Nifty 50 index gained 82.30 points (0.34%) to reach 24,168.
Market participants attributed the sustained momentum to de-escalation prospects in the Middle East following the U.S.-Iran memorandum of understanding signed remotely to resolve a 110-day standoff. The agreement includes termination of military operations across all fronts, reopening of the Strait of Hormuz, and lifting of naval restrictions on Iranian exports. These developments injected risk-on sentiment, with falling Brent crude prices below $78 per barrel boosted by expectations of renewed Iranian oil shipments.
Persistent strength in U.S. economic indicators – including robust retail sales and housing data – continued to pressure commodity-linked assets. Federal Reserve officials signaled hawkish inclinations by emphasizing “price stability” amid stable interest rates, contributing to the dollar’s index hovering near multi-year peaks.
Domestically, improved investor confidence amid accommodative monetary policy led to broad-based buying. Midcap and small-cap benchmarks outperformed, rising 0.4% and 0.7% respectively, as momentum stocks attracted institutional inflows. Individual stocks surged over 1%, with energy majors Adani Ports and Power Grid Corp rising 2.8% and 2.5%, while financials HDFC Bank (+2.2%) and SBI (+2.1%) benefited from banking sector resilience.
Market breadth remained robust, with 2,425 advancing stocks against 1,813 decliners and 181 unchanged listings. Analysts noted strengthening technical indicators suggesting further upside potential, pending clarification on bilateral agreements between Washington and Tehran set for finalization in the upcoming 60-day negotiation window following Friday’s ceremonial signing in Basel.
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