Markets soar worldwide on US Iran truce hopes, but India ends weak on financial stock selling

Indian equity benchmarks ended marginally lower on Thursday as investors booked profits in banking and financial stocks after a sharp recent rally, even as global markets surged to record highs on renewed optimism over US Iran ceasefire negotiations.

The Sensex declined 122.56 points or 0.16 per cent to settle at 77,988.68 , while the Nifty slipped 34.55 points or 0.14 per cent to close at 24,196.75 . Both indices witnessed heightened volatility during the session, reflecting a tussle between early buying momentum and late selling pressure.

Markets opened firm, tracking strong global cues from Asia and Wall Street, where equities rallied on hopes of an extended ceasefire between the United States and Iran. The Sensex climbed to an intraday high of 78,730.32 before reversing gains as profit taking intensified across heavyweight financial stocks.

Among major laggards, HDFC Bank, Kotak Mahindra Bank, Bajaj Finance, Titan, Mahindra & Mahindra and Bharti Airtel came under pressure. However, select counters such as Infosys, Adani Ports, Bharat Electronics, Trent and Eternal managed to end in positive territory, limiting broader losses.

The domestic market’s muted close came despite a strong global risk rally. Asian indices including Japan’s Nikkei and South Korea’s Kospi surged to fresh highs, while US equities extended gains on improving corporate earnings and diplomatic optimism. Sentiment was further supported by record profits from major US banks and strong results from chipmaker TSMC.

Brent crude rose to around 96 dollars per barrel , keeping inflation and supply side concerns in focus. Analysts noted that while geopolitical easing has improved risk appetite globally, Indian markets are showing signs of consolidation after recent sharp gains.

Foreign institutional investors remained net buyers in the previous session, but analysts cautioned that near term direction will depend on clarity over geopolitical developments, crude oil movement, and sustained earnings momentum.