Stock Market Today: Sensex Surges 400 Points, Nifty Reclaims 23,800 As US-Iran Negotiations Enter 'Final Stages'

Indian equity markets opened higher on May 21, tracking a broad-based improvement in global risk sentiment after US and Iran reportedly entered "final stages" of negotiations.

The BSE Sensex began the session with a gap-up of 414 points, or 0.55 per cent, at 75,732, while the NSE Nifty 50 opened 171 points higher, up 0.72 per cent, at 23,830.

Investor sentiment was buoyed by reports indicating easing tensions around the Strait of Hormuz, as multiple supertankers resumed passage through the key global shipping route. The development helped ease concerns of prolonged supply disruptions and added to the decline in crude oil seen in the previous session.

A rebound in US and Asian equities also gave domestic equities the initial push.

Global cues remained firmly positive. Wall Street rebounded from a three-day losing streak, led by gains in technology and semiconductor stocks, ahead of Nvidia’s quarterly earnings. Asian markets also staged a strong recovery, with MSCI’s Asia-Pacific index (ex-Japan) rising 1.2%, South Korea’s KOSPI surging over 4% after labour disruptions eased at Samsung Electronics, Japan’s Nikkei advancing 1.9%, and Australian equities gaining 1.5%.

Crude oil prices, meanwhile, showed a mild rebound after Wednesday’s sharp sell-off of over 5.6%, driven by optimism over US-Iran negotiations. Brent crude futures rose 0.77% to $105.83 per barrel, while WTI hovered near $99.2 per barrel. Markets had earlier reacted to comments from US President Donald Trump suggesting that talks with Iran were nearing completion, although he warned of potential escalation if a deal failed to materialise.

Domestic markets also drew support from the previous session’s decline in oil prices, which had briefly eased pressure on India’s import bill. This comes against the backdrop of persistent weakness in the rupee, which hit a fresh record low of 96.96 against the US dollar amid elevated crude prices.

As volatility remains driven by geopolitics and energy markets, investors are likely to continue tracking developments around crude oil, US-Iran negotiations, and global tech earnings for near-term cues.