The Indian equity market opened in the green on Tuesday after the US and Iran agreed to settle ongoing hostilities through a peace deal and nuclear agreement.
Both the BSE Sensex and NSE Nifty edged higher, extending a two-session rally as optimism over the preliminary US-Iran peace agreement pushed crude oil prices down, which in turn improved investor confidence in the markets.
At 10:00 am IST, the Sensex was trading 291 points higher at 76,555.08, while the Nifty gained 76 points to 23,930.30.
The crude price drop is essentially a positive sign for India, which remains one of the most crude oil-importing nations in the world.
Lower crude prices could typically take some pressure off the economy, support the rupee and also improve the trade deficit.
Meanwhile, the NSE Nifty 50 has recovered after facing pressure from elevated oil prices and foreign equity outflows since the Iran war began on February 28.
Recent RBI measures and renewed foreign investor buying have also improved market sentiment in the country.
Analysts said easing geopolitical risks and moderation in selling pressure could support the ongoing market recovery.
Besides, gold and silver prices have also surged since the US and Iran announced the deal ending hostilities and restoring free passage and shipping in the Strait of Hormuz.
Also read: Rupee rises 5 paise to 94.53 against US dollar in early trade
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