Sensex jumps 753, Nifty above 24,500 on Iran talks

Market opens higher on diplomacy headlines

Indian benchmark indices opened firmly higher on Tuesday morning as investors tracked reports of a possible second round of US-Iran peace talks. The early move reflected a risk-on shift after crude oil stayed below the $100-a-barrel mark, easing near-term inflation concerns for an oil-importing economy like India. Still, continued sharp rhetoric from both sides kept traders cautious about sudden reversals. By 9:51 am, the BSE Sensex was up more than 500 points and traded above 79,000. The NSE Nifty 50 gained more than 100 points and crossed 24,500 in morning trade. Market participants described the session as headline-driven, with geopolitics and oil prices setting the tone. Investors also watched the Indian rupee, which weakened in early trade.

Rally extends into the close for third straight day

The early strength carried through the session, taking domestic equities to a third consecutive day of gains. The Sensex jumped 753.03 points, or 0.96%, to settle at 79,273.33. During the day, it rose as much as 846.78 points to 79,367.08. The Nifty climbed 211.75 points, or 0.87%, to close at 24,576.60, staying above the 24,550 level. The gains followed a subdued Monday close, when the Sensex ended up 26.76 points at 78,520.30. The Nifty had added 11.30 points on Monday to finish at 24,364.85. Traders largely linked Tuesday’s follow-through to softer crude and hopes that diplomacy may reduce supply risks.

Volatility eases as hedging demand cools

A softer volatility print accompanied the early upmove. India VIX, a key gauge of near-term market volatility, eased more than 3% to 18.19 in morning trade. The decline suggested lower immediate hedging demand compared with recent sessions. Even so, the market’s direction was still seen as vulnerable to abrupt news flow around ceasefire negotiations and any statements from US and Iranian officials. With crude and currency moving closely, traders remained alert to any reversal in oil prices. The intraday tone stayed positive, but positioning remained sensitive to headlines.

Oil in focus as Brent trades around $15

Oil was central to the day’s narrative, with Brent crude referenced around $15. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said reports of a second round of talks were keeping hopes of resolution alive and that declining spot crude prices reflected confidence the conflict may not last long. He also cautioned that if the conflict persists, crude could spike again and hurt stock markets. The same comment flagged the macro risk of slower growth and higher inflation in a prolonged war scenario. For Indian markets, the link from oil to inflation expectations and corporate margins remains direct, especially when moves are sharp.

Who led the move: financials, consumption and select cyclicals

Gainers were led by a mix of large financials and consumption names. In morning trade, Axis Bank, L&T, Bajaj Finance and Tata Steel rose around 1% each among Sensex gainers, with Adani Ports also mentioned among stocks advancing around 1%. By the close, Trent topped the Sensex winners with a 3.55% rise. Other major gainers included Hindustan Unilever, ICICI Bank, Bajaj Finance, HDFC Bank and Axis Bank. On the losing side in the closing list were Bharat Electronics, Titan, Reliance Industries and NTPC. The leadership indicated a broad risk-on tilt rather than a narrow, single-sector surge.

IT lags while realty leads among sectors

Sector trends showed a clear divergence between domestic cyclicals and export-linked technology stocks. IT stocks such as Infosys and Tech Mahindra were among the laggards, declining up to 1% in the morning, and Nifty IT was the only sectoral index on NSE trading in the red with marginal losses. Realty was the standout, with Nifty Realty jumping more than 1%. Broader markets stayed positive, with the Nifty Midcap index up around 0.5% and the Nifty Smallcap 100 rising 0.7%. The combination of broader market strength and sector rotation suggested improving risk appetite, even as geopolitical uncertainty stayed elevated.

Market breadth stays positive across NSE and BSE

Breadth indicators were supportive through the day. Around 1,983 stocks advanced on the NSE, while 464 declined and 96 remained unchanged. On the BSE, 2,531 stocks advanced, while 1,760 declined and 162 remained unchanged. A positive advance-decline mix typically signals participation beyond a few index heavyweights. Still, the session’s drivers were clearly macro and headline-led, and traders remained focused on oil and diplomacy for directional cues.

Foreign flows remain uneven despite the rally

Foreign portfolio activity remained a point of caution. Despite three consecutive sessions of net foreign buying before Monday, foreign investors turned net sellers again at the start of the week. FIIs net sold Indian equities worth nearly ₹1,060 crore on Monday, offsetting a large part of the ₹1,731 crore they had net bought over three sessions last week. The flow pattern was also described as uneven, with FIIs net buyers in only four of the last 33 sessions. That mix suggested sentiment improved, but overseas participation was not steady.

Peace-talk expectations drive sentiment, but rhetoric persists

The rally was underpinned by expectations that Iran and the US may return to the negotiating table this week for a second round of discussions, after a previous round earlier in the month did not produce a long-lasting peace deal. At the same time, the news flow carried cautionary elements. Iran’s Foreign Minister Abbas Araqchi cited “continued violations of the ceasefire” by the US as a hindrance to further negotiations. Iran’s top negotiator and Speaker of Parliament Mohammad Baqer Qalibaf reiterated that Tehran would not negotiate under threats. Motilal Oswal’s Siddhartha Khemka said the market remained focused on the ceasefire deadline and the next round of talks, with uncertain participation a downside risk.

Airline stocks in focus on policy support

Airline counters also drew attention after the government approved a credit line guarantee scheme for airlines. SpiceJet shares hit the upper circuit, while IndiGo was up 4% on the development, as noted in the market highlights. The move reflected how policy announcements can drive sharp, stock-specific reactions, even when the broader market is being driven by macro cues.

Key figures at a glance

What investors will track next

Near-term market action is expected to remain news-driven, with prices oscillating between hope and fear as diplomacy headlines evolve, according to Geojit’s Vijayakumar. Investors will be watching for any confirmed developments on the proposed negotiations later this week and whether crude continues to remain contained. Currency movement is also likely to stay in focus alongside oil, given the rupee’s early weakness. With earnings season also on the radar, stock-specific moves may intensify as results and guidance emerge. For now, Tuesday’s session showed that easing crude and de-escalation hopes can quickly improve risk appetite, but the same channels can reverse if headlines turn adverse.