Fresh optimism over a possible agreement between the US and Iran lifted global markets on Wednesday after US President Donald Trump reiterated that a deal with Iran remained achievable. US and European markets rallied, while Asian markets surged on Thursday morning. Crude oil prices dropped nearly 5 percent, although gold and the dollar strengthened.
In derivatives trading at GIFT City, Gift Nifty closed at 23,858 on Wednesday night before slipping to 23,788 on Thursday morning, indicating a positive opening for Indian equities.
Iran has not yet responded to the latest draft proposal from the US. Trump repeated his warning that failure to accept the deal could invite a severe military response. The latest draft agreement was reportedly prepared with the involvement of Qatar and Pakistan, while Saudi Arabia, the UAE, Turkey and Egypt are also said to be active behind the scenes.
Reports that Iran-US ceasefire discussions were nearing the final stage boosted Wall Street on Wednesday. The sharp fall in crude oil prices also supported sentiment. Investors expect inflation pressures to ease and the need for higher interest rates to reduce if tensions subside and the Strait of Hormuz remains open.
The Dow Jones Industrial Average surged 645.47 points, or 1.31 percent, to close at 50,009.35. The S&P 500 gained 79.36 points, or 1.08 percent, to end at 7,432.97, while the Nasdaq Composite jumped 399.65 points, or 1.55 percent, to 26,270.36.
AI chip giant Nvidia reported results that beat expectations, but the stock slipped in after-hours trading as earnings were announced after market hours. Nvidia declined 1.4 percent in extended trading, though brokerages maintained buy recommendations.
The company’s data-centre revenue more than doubled. CEO Jensen Huang said Nvidia’s platform can support all new AI models and that AI business growth continues to accelerate.
The strong AI outlook from Nvidia lifted Japan’s SoftBank Group by 16 percent in Thursday morning trade.
US futures, however, edged lower. Dow futures fell 88 points, S&P 500 futures declined 19 points and Nasdaq futures dropped 108 points in early trade.
In New York trading, HDFC Bank ADR rose 1.53 percent during regular trade but slipped 0.85 percent in after-hours trade to $24.42.
ICICI Bank ADR gained 1.70 percent before ending unchanged in after-hours trade at $25.68.
Infosys ADR rose 0.39 percent and added another 0.07 percent in extended trade to close at $12.78, while Wipro gained 2.07 percent and advanced another 0.51 percent in after-hours trade to $1.98.
European equities closed sharply higher on Wednesday. Softer-than-expected UK retail inflation, improving bond markets and progress in Iran negotiations supported sentiment.
Asian markets rallied strongly on Thursday morning. Japan’s Nikkei 225 jumped 3.4 percent, while South Korea’s KOSPI soared 6 percent. Australia’s benchmark index gained 1.75 percent. Hong Kong’s Hang Seng rose 0.60 percent and Shanghai markets advanced 0.45 percent.
Indian equities opened sharply lower on Wednesday before recovering gradually to end with modest gains. Broader markets also finished higher.
Foreign institutional investors continued to sell, while domestic investors remained buyers. FIIs sold equities worth ₹1,597.35 crore in the cash market, while DIIs bought shares worth ₹1,968.35 crore.
IT, FMCG, media, consumer durables and pharma stocks declined, while oil, auto, realty, banking and metal shares gained.
The BSE Sensex rose 117.54 points, or 0.16 percent, to close at 75,318.39. The NIFTY 50 gained 41 points, or 0.17 percent, to settle at 23,659. Bank Nifty climbed 153.05 points, or 0.29 percent, to 53,562.20.
The Nifty Midcap 100 index advanced 0.49 percent, while the Smallcap 100 index added 0.04 percent.
Market breadth remained nearly even. On the BSE, 2,035 stocks advanced while 2,084 declined. On the NSE, 1,711 shares gained and 1,532 fell.
Aditya Birla Capital promoters will subscribe to a preferential share issue worth ₹4,000 crore.
Grasim Industries reported a 28 percent rise in consolidated net profit for the March quarter, while annual profit grew 33 percent, supported mainly by subsidiaries. The standalone business posted a loss.
Jubilant FoodWorks reported disappointing March-quarter numbers, with revenue growth slowing to a two-year low and net profit declining, though consolidated net profit rose 67 percent.
Apollo Hospitals Enterprise posted an 18 percent rise in revenue and a 36 percent jump in net profit for the March quarter. Profit margin improved from 13.77 percent to 15.30 percent.
Gold rebounded despite improving Iran-US relations. After falling to $4,452 an ounce on Wednesday, gold climbed $61.90 to close at $4,545.10. It rose further to around $4,571 on Thursday morning before easing slightly.
In Kerala, 22-carat gold prices jumped ₹1,760 per sovereign on Wednesday to ₹1,16,920.
Silver rebounded from a low of $73.02 an ounce to close at $76.02 and rose further to $76.81 on Thursday morning. Platinum traded at $1,957, palladium at $1,365 and rhodium at $9,325.
Industrial metals ended marginally higher on Wednesday. Copper gained 0.05 percent to $13,416.70 a tonne, while aluminium rose 0.30 percent to $3,610.63. Tin, lead and zinc also advanced, while nickel weakened.
Rubber prices remained largely flat in international markets. In Bangkok, RSS-3 rubber held steady at $288.30 per quintal, while RSS-1 stood at $291.80. In Kerala, RSS-4 slipped to ₹25,800.
Cocoa prices declined 1.59 percent to $3,845 per tonne.
The US dollar index closed at 99.09 on Wednesday and edged up to 99.15 on Thursday morning.
The euro strengthened to $1.1625 and the pound rose to $1.3432. The Japanese yen strengthened to 158.88 per dollar, while the Chinese yuan improved to 6.80 per dollar.
The yield on the US 10-year Treasury eased to 4.591 percent.
The dollar rose to ₹96.96 on Wednesday before closing at ₹96.82. The Reserve Bank of India continued to intervene actively in the market.
The rupee has weakened nearly 8 percent in 2026. In the offshore NDF market, the dollar rose to ₹96.99 before easing to ₹96.53. The yuan strengthened to ₹14.24, while the euro rose to ₹112.65.
To support rupee liquidity and stabilise the currency market, the RBI has announced a $5 billion dollar swap auction next week. The central bank will buy dollars from banks and provide rupees, with the transaction to be reversed after three years.
Hopes of easing tensions weighed on crude oil prices. Brent Crude fell $5.90 per barrel on Wednesday to close at $105.02 and traded around $105.40 on Thursday morning.
WTI crude stood at $98.72, while UAE Murban crude traded at $103.22.
Cryptocurrencies gained modestly. Bitcoin traded above $77,900 on Thursday morning, while Ethereum stayed above $2,140 and Solana traded above $86.50.
(May 20, Wednesday)
Sensex: 75,318.39 (+0.16 percent)
Nifty 50: 23,659.00 (+0.17 percent)
Bank Nifty: 53,562.20 (+0.29 percent)
Nifty Midcap 100: 61,323.30 (+0.49 percent)
Nifty Smallcap 100: 17,870.90 (+0.04 percent)
Dow Jones: 50,009.35 (+1.31 percent)
S&P 500: 7,432.97 (+1.08 percent)
Nasdaq: 26,270.36 (+1.55 percent)
Dollar/Rupee: ₹96.82 (+₹0.29)
Gold (ounce): $4,545.10 (+$61.90)
Gold (sovereign): ₹1,16,920 (+₹1,760)
Brent crude: $105.02 (-$5.90)
