In mid-afternoon trading, the Indian equity benchmarks experienced a notable surge, buoyed by favorable global cues and signs of easing geopolitical tensions. Investor sentiment saw a significant uplift following reports that Iran's Supreme Leader, Mojtaba Khamenei, is open to negotiations facilitated by U.S. intermediary Steve Witkoff. This development, alongside the announcement from U.S. President Donald Trump regarding a temporary pause on potential military strikes targeting Iran's energy sector, contributed to a more optimistic market outlook. As a result, the Nifty 50 index surpassed the 23,000 mark, demonstrating a robust performance just ahead of the expected expiry of NSE derivative contracts.
By 14:25 IST, the S&P BSE Sensex had climbed 1,472.16 points, reflecting a 2.03% increase to reach 74,158.35, while the Nifty 50 soared by 468.25 points, or 2.08%, to land at 22,980.90. The broader market also outperformed the main indices, with the BSE 150 MidCap Index gaining 2.63% and the BSE 250 SmallCap Index advancing by 2.33%. The market breadth indicated positive momentum, with 3,067 shares rising against 1,120 that fell, while 186 shares remained unchanged.
Notably, realty shares rebounded after facing downward pressure for three consecutive trading sessions. The Nifty Realty index rose by 2.22% to reach 678.15, recovering from a previous decline of 9.22% over the past three days. Among the top gainers in this sector were Godrej Properties (up 3.49%), SignatureGlobal India (up 2.76%), and Anant Raj (up 2.68%). Other noteworthy performers included Sobha (up 2.56%) and Prestige Estates Projects (up 2.44%). This resurgence in real estate stocks may signal renewed investor confidence in the sector, particularly in light of improving macroeconomic conditions.
Despite the positive developments, global investors remain cautious as the Middle East conflict continues into its fourth week. While both the U.S. and Iran have expressed a willingness to de-escalate tensions, concerns about energy security and the potential impact on global economic growth linger. Iranian Foreign Minister Abbas Aragchi has reportedly communicated that Khamenei is willing to expedite negotiations if certain conditions are met. Furthermore, Trump has instructed the U.S. Department of Defense to postpone any planned military actions against Iranian energy infrastructure for five days, reflecting a strategic shift in response to ongoing discussions. The chief of the International Energy Agency has warned of significant damage to nearly 40 energy assets in the region, emphasizing the potential for a severe crisis. Investors will be closely monitoring these developments as they unfold, which could influence market dynamics in the days ahead.