Early buying interest pushes benchmarks higher; IT stocks lead gains while oil prices cool on US-Iran peace signals

Indian equity markets started Friday on a firm footing, with the Sensex comfortably trading above the 76,000 level and the Nifty inching closer to the psychological 24,000 mark during early deals. The uptick followed a truncated holiday-shortened week and came amid mixed cues from global peers.

The 30-share Sensex was seen hovering around 76,150 levels, up nearly 280 points from its previous close, while the broader Nifty traded near 23,980, showing gains of about 70 points. The market remained closed on Thursday, May 28, on account of Bakri Eid.

Early Gains on D-Street

Investors appeared to shrug off the modest losses from the last trading session. On May 27, the Sensex had closed 142 points lower at 75,868, while the Nifty slipped 7 points to end at 23,907. Banking shares had witnessed the maximum selling pressure that day.

However, Friday’s early session saw renewed buying interest across select pockets, though sectoral performance remained mixed. Nifty IT emerged as the top gainer, rising 1.74 per cent, while Consumer Durables and Chemical indices traded in the red.

Expert Sees Rangebound Moves

Arun Mantri, founder of Mantri Finmart, said the Nifty is likely to trade within a broad range of 23,600 to 24,100 points in the coming sessions. Market participants are advised to adopt a “buy on dips” strategy, given the prevailing support levels and lack of major negative triggers domestically.

“The range is likely to hold unless there is a fresh global shock. Investors with a medium-term view can look at accumulating quality names on declines,” Mantri reportedly said.

Oil Dips on US-Iran Talks

Sentiment got a minor boost from cooling crude prices. Brent crude eased to around $93 per barrel on Friday following reports that peace talks between the United States and Iran were underway. Lower oil prices are typically viewed as positive for India, a major net importer of crude.

US Vice-President JD Vance told the BBC that a formal agreement to end the conflict was “very close” but cautioned that key differences remained unresolved. “It’s too early to say when or if an agreement will be finalised, though negotiators are very close,” Vance said. The proposed deal reportedly includes a 60-day ceasefire extension and formal discussions on Iran’s nuclear programme.

Rupee Recovers Marginally

The Indian rupee strengthened by 5 paise to settle at 95.53 against the US dollar on a provisional basis, aided by softer crude prices and early equity inflows. However, the currency remains under broad pressure given the sustained strength of the greenback overseas.

Global Cues Offer Mixed Support

Overnight, US markets ended marginally higher. The Dow Jones added 25 points (0.05 per cent) to close at 50,669, while the Nasdaq surged 243 points (0.91 per cent) and the S&P 500 rose 43 points (0.58 per cent). Most Asian markets advanced on Friday, with South Korea’s KOSPI jumping nearly 2 per cent, Japan’s Nikkei climbing 1.86 per cent, and Hong Kong’s Hang Seng edging up 0.25 per cent.

FIIs Remain Net Sellers

Foreign institutional investors continued their selling spree, offloading shares worth ₹1,043 crore on May 27. Over the last seven days, FII outflows stood at ₹2,629 crore, while in the past 30 days, they have pulled out nearly ₹42,905 crore. In contrast, domestic institutional investors remained net buyers, pumping in ₹3,821 crore on the same day.

Market participants will closely track progress on the US-Iran negotiations and crude price movements in the coming sessions. For now, the early morning momentum suggests some resilience, though analysts caution that sustained upmoves would require broader participation beyond IT stocks.