US President Donald Trump said on Saturday that Washington and Tehran had “largely negotiated” a memorandum of understanding on a peace agreement that could reopen the Strait of Hormuz — a key maritime route that handled nearly one-fifth of global oil and LNG shipments before the conflict began.
Following the remarks, Brent crude futures dropped 5.5% to $97.8 per barrel, touching their lowest level in two weeks.
The NSE Nifty advanced 312 points, or 1.3%, to settle at 24,032, while the BSE Sensex gained 1,074 points, or 1.4%, to end at 76,489. Both indices recorded their strongest closing levels since May 8.
However, analysts noted that gains remained somewhat restricted after officials from both the United States and Iran attempted to cool expectations of an immediate breakthrough in negotiations.
Out of the 16 major sectoral indices, 15 ended in positive territory. Broader markets also performed well, with the small-cap index rising 1.4% and the mid-cap index gaining 0.9%.
Financial stocks led the rally among heavyweight sectors, climbing 2.2%. Private sector banking majors HDFC Bank and ICICI Bank surged 2.6% and 2.3%, respectively.
Foreign portfolio investors have sold domestic equities worth $23.9 billion so far this year, exceeding last year’s record annual outflows.
