Nifty crosses 24,000 mark, Sensex gains as US-Iran peace framework, lower oil prices lift sentiment

MUMBAI: Indian equity markets opened higher on Wednesday, with the Nifty crossing the 24,000 mark and the Sensex gaining around 100 points, supported by optimism surrounding the proposed US-Iran peace framework and easing crude oil prices. At the time of filing this report, the Sensex was trading at 76,871.58, up 63.10 points, or 0.08 per cent, while the Nifty was at 24,010, up 20.95 points, or 0.09 per cent.

Market sentiment remained positive as Brent crude stayed below the USD 80 per barrel mark, helping ease concerns over inflation and energy costs. In the opening session, buying interest was seen in information technology, consumer durables, energy, FMCG and realty stocks, while metal counters remained under pressure. Banking stocks traded mixed as investors awaited further global cues. Sectoral trends followed the positive momentum seen in recent sessions, with defensive and consumption-linked sectors outperforming.

Banking and market analyst Ajay Bagga said developments surrounding the proposed US-Iran agreement have played a key role in improving investor confidence. “What we know is that the Iran-US MOU has been kept very vague and low on details on purpose, to help the Iranian moderates sell it domestically in Iran and to avoid Trump coming under intense criticism at home. Many more details have been discussed at back channels,” Bagga said.

He added that the durability of the agreement remains uncertain and will depend on developments over the next two months. “Whether these hold up over the next 60 days is a big question. We will see the signing on Friday, the MOU contents will be made public shortly afterwards,” he said.

According to Bagga, markets have reacted positively to signs of easing tensions in the region. He noted that two Iranian state-owned tankers carrying about 3.8 million barrels of crude oil passed through the US blockade recently, contributing to expectations of improved oil supplies. “That led to Brent crude oil falling below USD 80 and briefly touching USD 78 per barrel as well. If oil starts normalising, the rest will get worked out,” he said.

Bagga said several key issues, including the release of blocked Iranian funds worth USD 24 billion and a proposed USD 300 billion Iranian economic restoration package, remain linked to further negotiations over the next 60 days. He added that reopening oil infrastructure and clearing mines in the Strait of Hormuz would require significant time and investment.

He also said US and European companies are likely to secure a large share of oil development contracts, while China and Indian firms could benefit from reconstruction opportunities across the Gulf region.

Meanwhile, market participants are also awaiting the outcome of the US Federal Reserve’s policy meeting later in the day. Bagga noted that the June 2026 Federal Open Market Committee (FOMC) meeting is significant as it is the first rate-setting meeting chaired by newly sworn-in Federal Reserve Chair Kevin Warsh.

“The Federal Reserve is widely expected to keep interest rates unchanged at 3.50-3.75 per cent, with markets assigning a near 97 per cent probability of a pause. The real focus will be on the updated economic projections and Chair Warsh’s first press conference,” he said.

According to Bagga, investors will closely watch whether the Fed maintains or removes its easing bias after inflation accelerated to a three-year high of 4.2 per cent in May.

Market analyst Vipin Dixena said the bullish momentum in Indian equities continues to remain intact. “The US-Iran peace deal framework and Strait of Hormuz reopening continue to boost risk sentiment, while crude oil prices staying below USD 80 are easing inflation concerns,” he said.

Dixena added that Nifty’s ability to sustain above the 24,000 mark will be important for further upside, with immediate resistance seen near 24,200.

Abhishek Kumar, SEBI-registered investment adviser and founder of SahajMoney, said investors remain cautious ahead of the Fed decision despite the positive undertone in markets.

“The muted start reflects a cautious approach before the US Federal Reserve’s verdict due later today. With Brent near a three-month low around USD 79, traders are balancing positive oil-price signals with global policy uncertainty,” he said. (ANI)