Sensex, Nifty Surge Amid US-Iran Peace Talks Optimism; Oil Dip Powers Market Recovery

Sensex, Nifty Surge Amid US-Iran Peace Talks Optimism; Oil Dip Powers Market Recovery​

The Indian benchmark indices concluded the week on a strong note, fueled by heightened optimism surrounding ongoing US-Iran peace talks. This positive global backdrop, coupled with rupee appreciation and moderation in crude oil prices, drove broad-based buying across key sectors.

On Friday's close, Sensex surged by 504.86 points, marking a gain of 0.65 per cent to settle at 78,493.54. Simultaneously, Nifty gained 156.80 points, also climbing 0.65 per cent to close at 24,353.55. Analysts pointed to this robust performance as evidence of improving trader sentiment across the board.

Market Breadth Outperforms Benchmark Indices​

While both Sensex and Nifty posted significant gains, the broader market segments demonstrated stronger momentum. The Nifty Midcap index rose by approximately 1.27 per cent, while the small cap index advanced by approximately 1.48 per cent.

This outperformance suggests that systematic investment is broadening beyond the largest stocks. The Indian equity market successfully orchestrated a steady and orderly recovery throughout the week, supported by improved global sentiment and the sharp moderation of crude oil costs.

Sectoral Strength Boosts Market Sentiment​

Sectoral analysis revealed strong buying interest across most key areas. The Nifty FMCG, Metal, and Oil and Gas indices were major drivers, advancing significantly in the range of 1 per cent to 3 per cent.

Despite the overall positive undertone, the Nifty IT sector remained notably subdued and lagged the market's gains. Overall, the market demonstrated meaningful gains underpinned by consistent buying interest and a gradual pickup in risk appetite.

Analyst Viewpoint: Stable Recovery Awaits External Catalysts​

Market experts maintain a stance of cautious optimism regarding the near-term outlook. While softening crude prices and improving global cues support the recovery, analysts caution that upside momentum remains dependent on external catalysts.

Ponmudi R, CEO of Enrich Money, noted that price action exhibited greater stability compared with recent weeks, suggesting that dips are attracting buying interest. However, he cautioned that despite the recovery, the market has yet to achieve a decisive breakout at higher levels, indicating the trend is still in a transition phase.

Institutional Flows Drive Support Amid Profit-Taking​

Foreign institutional investors (FIIs) showed early signs of stabilization, becoming net buyers during the final three sessions of the week, which lent critical support to the overall recovery and bolstered sentiment.

In contrast, domestic institutional investors (DIIs) turned net sellers in the final sessions, reflecting potential profit-taking activity at elevated levels. On a weekly basis, DII outflows were recorded at approximately ₹ 6,300 crore.

Overall flows remained marginally negative for the week at around ₹ 250 crore. Despite the recent shift in DII flows, their broader role as a stabilizing force is considered intact, providing structural support to the market.

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