Mumbai, May 7 (BNP): Indian benchmark indices traded in positive territory on Thursday morning as investor sentiment improved amid expectations of a possible diplomatic breakthrough between the United States and Iran.
The BSE Sensex rose nearly 380 points, or 0.48 per cent, touching an intraday high of 78,339.24. The NSE Nifty also advanced by around 92 points, or 0.37 per cent, to trade near 24,423 in early deals.
Despite the broader gains, several heavyweight stocks witnessed selling pressure. Among the notable laggards on the Nifty were Tata Consumer Products, Power Grid Corporation, Hindustan Unilever, TCS, HDFC Bank, Titan, NTPC, and Sun Pharma.
Sector-wise, indices linked to real estate, FMCG, consumer durables, and private banks slipped up to 0.7 per cent. On the other hand, auto and metal stocks outperformed, with both sectors posting gains of nearly 0.8 per cent.
Analysts attributed the positive market mood to reports suggesting Iran is reviewing a peace proposal backed by the US. According to international reports, the proposed framework could help ease ongoing tensions in West Asia, although major concerns surrounding Iran’s nuclear programme and the Strait of Hormuz remain unresolved.
An Iranian foreign ministry spokesperson indicated that Tehran would soon share its response to the proposal, while US President Donald Trump expressed confidence that Iran is willing to negotiate.
Market experts, however, cautioned that volatility may continue due to geopolitical uncertainty and fluctuating crude oil prices. They noted that investor sentiment is currently swinging between optimism over diplomatic progress and fears linked to the broader regional conflict.
Analysts also flagged concerns over rising valuations in the artificial intelligence segment globally, warning that any sharp correction in AI-related stocks could impact foreign portfolio investment flows into emerging markets, including India.
On the earnings front, market participants said investors are rewarding companies that delivered strong March quarter results, while firms missing expectations are facing sharp reactions.
In the commodities market, Brent crude traded around $102.50 per barrel, up 1.2 per cent, while US West Texas Intermediate (WTI) crude gained nearly 1.5 per cent to trade close to $96.50 per barrel.
Asian markets mirrored the positive momentum, with indices such as the Nikkei, Hang Seng, and KOSPI trading firmly higher. Overnight, Wall Street also ended on a strong note, with the S&P 500 gaining 1.46 per cent and the Nasdaq rising 2 per cent.
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