Sensex jumps 905 points, Nifty ends at 22,936 as crude eases on US-Iran diplomacy hopes

Indian equity benchmarks staged a strong rebound on Thursday. The BSE Sensex closed at 74,151.04, up 1.24% or about 905 points, while the NSE Nifty 50 ended at 22,936.75, a gain of 1.05%.

Buying was broad-based, with 39 of the 50 Nifty stocks ending higher. The Nifty Midcap 100 and Smallcap 100 indices each rose close to 1%.

What drove the rally

Market participants pointed to several supports: encouraging results for the July-September quarter, the US Federal Reserve's decision to leave rates unchanged, and a dip in crude oil prices. Oil eased after reports, first carried by The Wall Street Journal, that US Vice President JD Vance had written to a senior Iranian official in an effort to revive talks. President Donald Trump later played down the contact, saying it concerned humanitarian aid such as medical supplies.

Brent crude, which had settled above $115 a barrel on Wednesday, traded around $114 on Thursday morning and near $110 for the January contract by the Indian afternoon. For India, which imports most of its crude, any sustained fall in oil prices eases pressure on inflation, the rupee and the trade deficit.

Gainers and losers

Adani Ports was the top Nifty gainer, rising more than 6%, followed by Adani Enterprises and Eternal. Kotak Mahindra Bank and Power Grid also advanced. Trent was the biggest loser, slipping about 1.8% after Noel Tata announced he would step down as chairman and director, while Maruti Suzuki, Bajaj Auto, SBI Life and Eicher Motors also ended lower.

Among sectors, realty led with a gain of 2.75%, while FMCG and PSU bank indices rose more than 2% each. Auto and cement were the only sectoral indices to close in the red.

Flows and outlook

Provisional exchange data showed foreign portfolio investors were net sellers of about Rs 944 crore on Thursday after two days of buying, while domestic institutions bought shares worth about Rs 1,924 crore, Business Standard reported. Analysts said oil prices and developments in West Asia remain the key risks for the market in the near term.

Separately, SEBI Chairman Tuhin Kanta Pandey said the regulator would review compliance requirements for foreign portfolio investors and seek public comments.