Nifty 50 above 24,300 as crude drops 7% on US-Iran truce hopes

GIFT Nifty flags a gap-up start

GIFT Nifty was trading around the 24,306 level, at a premium of nearly 200 points over the Nifty futures’ previous close. That setup signalled a gap-up opening for domestic indices after improving global cues. The key driver through the session was the crude oil trade, which reacted to reports around a possible US-Iran peace framework. Lower oil prices tend to support India’s macro backdrop by easing pressure on the import bill and inflation. Traders also tracked how quickly risk sentiment could change given the headlines around the Strait of Hormuz.

What changed on Wednesday’s session

Indian benchmark indices rallied sharply on Wednesday, supported by global cues and optimism about de-escalation in West Asia. Reports said the US and Iran were close to a peace agreement, with references to a one-page memorandum of understanding to stop the conflict and set a framework for nuclear negotiations. As those reports circulated, crude prices slid and equities strengthened into the close. The market’s move was also described as driven by strong buying in the second half and “fag-end buying” into the finish.

Closing numbers: Sensex up 940.73, Nifty gains 298.15

By the close, the BSE Sensex rose 940.73 points (1.22%) to 77,958.52. The NSE Nifty50 gained 298.15 points (1.24%) to settle at 24,330.95, ending above the 24,300 mark. During the session, as of 3:00 PM, Nifty50 was up 306.05 points at 24,338.85 and Sensex was up 974.93 points at 77,920.89. The move lifted sentiment after prior weakness linked to oil spikes and uncertainty around the conflict.

Crude oil move stays central to the equity reaction

Brent crude’s May futures contract was reported down 6.94% at $102.24 per barrel on the Intercontinental Exchange during Wednesday’s trade. In other updates around the same news flow, Brent was also cited at $108.23 per barrel (down 1.49%) as traders positioned for a possible resolution. The sensitivity to crude remained high because the conflict had earlier pushed prices to as high as $120 per barrel, according to the report. Subsequent headline reversals also showed how quickly oil can rebound: Brent was later cited back at $101.00 per barrel after US and Iranian forces exchanged fire near the Strait of Hormuz.

Broader market strength: midcaps and smallcaps outperform

The rally was not limited to the frontline indices. In the broader market, Nifty MidCap ended 1.76% higher and Nifty SmallCap ended 1.93% higher. Another update also described midcap and smallcap indices rising close to 2% each. This broader participation suggested the move was risk-on rather than narrowly driven by a few heavyweights.

Sector performance: banks and realty lead, FMCG lags

Most sectoral indices ended in the green, with auto, media, private bank, PSU bank, realty, metal and pharma up 1-2% in one summary. Power, FMCG and energy were cited as the exceptions in another market wrap, while a separate note said Nifty FMCG underperformed the most. Nifty PSU Bank was specifically highlighted as a leader, rising 2.8% on the day. Nifty Financial Services was also mentioned among the strong performers.

Stock-specific moves: IndiGo among top gainers, ONGC among laggards

InterGlobe Aviation (IndiGo) featured among the biggest Nifty gainers, alongside Trent, Tata Motors Passenger Vehicles, Shriram Finance and Asian Paints. On the other side, ONGC, L&T, Reliance Industries, Power Grid Corp and NTPC were listed among the losers. These moves tracked the day’s overarching theme: crude-linked names and defensives did not lead the rally, while cyclicals and rate-sensitive pockets attracted buying.

Intraday swings show headline sensitivity

Even as GIFT Nifty indicated an upbeat start on some days, markets also opened in the red when reports emerged of the US and Iran exchanging fire at the Strait of Hormuz. One update said Sensex fell 400 points at the open and Nifty was down 120 points in that reaction. In another morning trade snapshot dated May 7, Sensex rose as much as 380 points to 78,339.24 while Nifty traded at 24,423.35, up 92 points. The sequence underlined that traders were repricing risk quickly as the geopolitical narrative shifted.

Currency and flows: rupee weakens, FIIs turn selective

The rupee was reported to have depreciated 45 paise to 94.67 against the US dollar in early trade on Friday, coinciding with a rebound in Brent to $101 per barrel after the exchange of fire near the strait. In another early trade update, the rupee was cited lower by 20 paise to 93.36. On flows, foreign investors bought ₹666 crore worth of shares on Wednesday, according to provisional data. But the same news set also noted that FIIs had turned net sellers again on Monday, with net selling of nearly ₹1,060 crore.

Key numbers at a glance

Why it matters for Indian markets

The day’s price action reinforced how directly Indian equities are reacting to crude oil moves and West Asia headlines. Lower oil prices can ease inflation pressure and improve the outlook for corporate margins, while sudden spikes raise concerns for the rupee and imported inflation. The narrative also highlighted that market direction may remain driven by geopolitical developments, especially around the Strait of Hormuz.

Conclusion

Wednesday’s rally took Nifty back above 24,300 and pushed Sensex higher by 940.73 points as crude slid sharply on reports of progress toward a US-Iran peace framework. Subsequent sessions showed that the same theme can reverse quickly when conflict headlines resurface, keeping markets sensitive to updates on talks and shipping lanes.