Sensex, Nifty post mild gains over hopes of US-Iran deal
Mumbai, May 22
The Indian equity markets posted mild gains early on Friday tracking positive global cues, over optimism regarding US-Iran peace negotiations.
As of 9.23 am, Sensex added 307 points, or 0.41 per cent, to reach 75,491 and Nifty gained 89 points, or 0.38 per cent to reach 23,744.
Main broad-cap indices showed divergence with the benchmark indices, as the Nifty Midcap 100 added just 0.06 per cent, and the Nifty Smallcap 100 lost 0.02 per cent.
Sectoral indices on NSE traded mixed with gains led by Nifty PSU bank and Nifty private bank up 0.53 per cent and 0.75 per cent, respectively. Nifty media and realty were the top losers down 0.83 per cent and 0.75 per cent, respectively.
Immediate support for Nifty is placed around the 23,500-23,550 zone, while resistance is seen near the 23,850-23,900 range, market participants said. Immediate support for Bank Nifty is placed around the 53,300-53,500 zone, while resistance is seen near the 54,400-54,500 range.
Analysts noted that market activity is majorly marked by buying on dips and selling on rallies, probably led by institutional activity.
Brent crude declining to below $105 and rupee appreciating to 96.20 from 96.96 level are positive developments, they added.
Broader market activity shows an optimistic trend due to positive quarterly earnings from small and midcaps.
Asia-Pacific markets traded higher Friday over investor optimism regarding diplomatic efforts in reaching a peace deal in the Middle East.
Tehran said it remains committed to keeping enriched uranium stockpiles within the country, according to reports, which could pose challenges in concluding a deal with Washington, as US President Donald Trump continues to claim dismantling Iran's nuclear programme as his central military objective.
In Asian markets, China's Shanghai index gained 0.33 per cent, and Shenzhen added 1.2 per cent, Japan's Nikkei advanced 2.29 per cent, and Hong Kong's Hang Seng Index inched up 0.9 per cent. South Korea's Kospi added 0.17 per cent.
The US markets ended in green overnight as Nasdaq gained 0.09 per cent. The S&P 500 advanced 0.17 per cent, and the Dow Jones added 0.55 per cent.
On May 21, foreign institutional investors (FIIs) net sold equities worth Rs 1,891 crore, while domestic institutional investors (DIIs) net bought equities worth Rs 2,492 crore.
— IANS
Reader Comments
Finally some positivity! But I'm wary of this "buy on dips, sell on rallies" pattern. It feels like we're in a range-bound market with no clear direction. Also, Brent crude below $105 is good for our import bill, but rupee at 96.20 still hurts. Let's see if this rally sustains through the week. 🙏
Not convinced by these gains. The fact that smallcaps are actually losing while largecaps gain suggests this is a narrow rally, probably driven by a few stocks. Realty and media dragging—that's concerning because those sectors usually lead in a genuine bull market. I'd wait for more confirmation before jumping in.
Yaar, every day there's some global news moving our markets. Iran deal, US elections, China slowdown... When will we focus on domestic fundamentals? Our Q4 earnings have been decent, especially in midcaps. But this constant FII selling is frustrating. Let's hope DIIs keep supporting and we cross 24,000 soon.
Interesting how markets ignore the Iran nuclear deal complications and just rally on hope. Trump's claim about dismantling Iran's program is unrealistic—Tehran won't give up enriched uranium. So this optimism could be short-lived. But for now, enjoying the green! My portfolio's up 0.5% today. Small wins matter. 😊
PSU banks leading is a good sign, but Nifty at 23,744 with resistance at 23,900 seems like a tough climb.
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