Indian Shares Rally On US-Iran Deal Optimism

RTTNews | 149 days ago
Indian Shares Rally On US-Iran Deal Optimism

(RTTNews) - Indian shares rose sharply on Wednesday as investors braced for possible new peace talks between the United States and Iran in Pakistan.

Optimism prevailed around a ceasefire and a possible resolution, following U.S. President Donald Trump's comments about resuming talks in Pakistan.

Brent crude prices slumped to around $95 a barrel after Trump indicated in an interview that the second round of U.S.-Iran talks "could happen over the next two days" to work out a deal that could end the war that began on Feb. 28.

However, media reports suggested that the United States has set out two new conditions before restarting negotiations.

Washington wants full and unrestricted reopening of the Strait of Hormuz, Israel Hayom reported, adding the Americans are sticking to a position of reciprocity.

The benchmark BSE Sensex soared 1,263.67 points, or 1.64 percent, to 78,111.24 as hopes of renewed U.S.-Iran negotiations eased fears of an energy-led inflation shock and prompted traders to dial back hawkish expectations for Fed policy.

The broader NSE Nifty index jumped 388.65 points, or 1.63 percent, to 24,231.30 while the BSE mid-cap and small-cap indexes surged 2.2 percent and 2.4 percent, respectively.

The market breadth was strong on the BSE, with 3,583 shares rising while 804 shares declined and 126 shares closed unchanged.

Buying was seen across the board, with Kotak Mahindra Bank, Sun Pharma, Trent, Adani Ports, Asian Paints, Larsen & Toubro, TCS, Tech Mahindra, Power Grid Corp, Eternal and IndiGo climbing 3-5 percent.

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