Markets Rally as Trump Signals Iran Talks, Oil Slips
Markets Rally as Trump Signals Iran Talks, Oil Slips
Global stocks rise on talk of US-Iran talks and easing oil prices, with Indian benchmarks climbing and risk appetite improving.
Indian equities bounced back after a public holiday, with Sensex and Nifty climbing as investors cheered signs of potential de-escalation in West Asia. At 9.22 am, the BSE Sensex stood at 78,158.84, up 1,311.27 points or 1.71 per cent. The Nifty was at 24,212, up 369.35 points or 1.55 per cent.
Brent crude futures for June delivery were trading at $95.06, after plunging nearly 5 percent on Tuesday, as supply disruption fears faded and risk appetite improved amid softer inflation data.
Globally, the Asian market rally was led by Korea's Kospi, which gained 3 per cent for the day. Japan's Nikkei, Hong Kong's Hang Seng and mainland China's Shanghai Composite rose up to 0.9 per cent.
Trump’s remarks about a second round of US-Iran talks within two days, possibly hosted by Pakistan, boosted risk-on sentiment and fed expectations for de-escalation in West Asia.
Hopes of resumed talks and a drop in Brent prices bode well for the near term, but risks to the global economy linger as the Hormuz Strait remains largely closed and the IMF warns of recession risks if the conflict prolongs.
Analysts note the rally could have legs if large-cap leaders continue to pull the indices higher, buoyed by softer inflation data and a resilient global liquidity backdrop, though they warn the move could be fragile if headlines shift.
