Indian markets touch 6-week High amid hopes of US-Iran talks

New Delhi, Apr 21: Amid hopes of fresh round of talks between the US and Iran, Indian equity benchmarks reacted positively today, closing at six-week high.

The Nifty 50 rose 0.87 per cent to 24,576.60, while the BSE Sensex advanced 0.96 per cent to 79,273.33.

Both indices have now gained around 10 per cent in April, recovering from a sharp decline of nearly 11.5 per cent in March.

The markets were encouraged by expectations that peace talks between the United States and Iran could resume in Pakistan.

Gains were broad-based, with 13 of the 16 major sectors ending higher. Broader markets also participated, with small-cap and mid-cap indices rising 0.9 per cent and 0.5 per cent, respectively.

Financial stocks led the rally, with the sector gaining 1.2 per cent and banks climbing 1.4 per cent after the Reserve Bank of India partially rolled back curbs on rupee derivatives trading imposed earlier this month to stabilise the currency.

Heavyweight lenders HDFC Bank and ICICI Bank rose 2.1 per cent and 2.4 per cent, respectively, on optimism around their March quarter earnings. ICICI Bank had gained 0.7 per cent in the previous session, while HDFC Bank had declined 0.6 per cent.

Among individual stocks, Nestle India surged 7.3 per cent after reporting a rise in quarterly profit.

On the downside, SBI Life Insurance Company fell 3.6 per cent to become the top loser on the Nifty, after reports that the finance ministry has asked banks to avoid exclusive distribution tie-ups with insurance companies.

Investor sentiment remained sensitive to global cues, particularly oil prices, as the conflict in the Middle East continues to pose risks to India’s inflation and growth outlook and has contributed to sustained foreign investor outflows.