Mumbai: Benchmark indices ended sharply higher on Friday, with the Sensex climbing 1,695.40 points and the Nifty surging nearly 2 per cent, in tandem with a rally in global markets and a decline in crude oil prices after US President Donald Trump declared that his country has ended the war with Iran.
The 30-share BSE Sensex jumped 1,695.40 points, or 2.30 per cent, to settle at 75,527.95. During the day, it surged 1,775.47 points, or 2.40 per cent, to 75,608.02.
The 50-share NSE Nifty ended sharply higher by 461.30 points, or 1.99 per cent, to close at 23,622.90. Intra-day, the benchmark index zoomed 483.75 points, or 2 per cent, to 23,645.35.
US President Donald Trump said that a deal to end the war with Iran is nearly complete and is expected to be signed over the weekend in Europe, as he called off military strikes on the Islamic Republic hours after threatening to take control of its oil industry.
Trump, speaking to reporters at the Oval office on Thursday afternoon, said Vice President J D Vance is expected to attend the signing ceremony, which could take place in Europe as soon as this weekend.
Later, addressing a tele-rally in favour of Georgia Lt Governor Burt Jones, who is running for the post of Governor, Trump declared that the US has ended the war with Iran.
“I don’t know if you heard, but we ended the war with Iran today (Thursday), and they have agreed never to have a nuclear weapon, something that we insisted on. That was the whole purpose,” Trump said.
From the 30-Sensex firms, Bajaj Finance, Larsen & Toubro, InterGlobe Aviation, Titan, Eternal and HDFC Bank were among the biggest winners.
Tech Mahindra and Power Grid were the only laggards from the pack.
Brent crude, the global oil benchmark, dropped 3.98 per cent to USD 86.78 per barrel.
In Asian markets, South Korea’s Kospi jumped 4.63 per cent, while Japan’s Nikkei 225 index went up by 2.81 per cent. Shanghai’s SSE Composite index and Hong Kong’s Hang Seng also ended higher.
European markets also traded in the positive territory.
US markets ended significantly higher on Thursday.
“Indian equities witnessed a strong turnaround session today, with the Nifty-50 surging nearly 2 per cent and reclaiming the 23,600+ zone, marking one of the strongest bullish moves in recent sessions. The rally was driven by a sharp improvement in global risk sentiment, easing geopolitical concerns and renewed confidence across risk assets,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
The biggest trigger for today’s move was the sudden shift in tensions in West Asia, he said.
“Expectations of a potential diplomatic resolution between the US and Iran, along with the cancellation of planned military action, reduced fears of a wider conflict,” Hariprasad added.
A major positive for India was the sharp decline in crude oil prices, he further said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,987.09 crore on Thursday, according to exchange data.
In the previous session, the 30-share BSE Sensex declined 150.63 points, or 0.20 per cent, to settle at 73,832.55. The Nifty edged lower by 53.35 points, or 0.23 per cent, to end at 23,161.60.
PTI