MUMBAI: Benchmark indices Sensex and Nifty rebounded in early trade on Friday and were trading sharply higher, following a rally in global markets and a drop in crude oil prices after US President Donald Trump declared that his country has ended the war with Iran.
The 30-share BSE Sensex jumped 921.30 points to 74,753.85 during initial deals. The 50-share NSE Nifty surged 254.20 points to 23,417.25.
US President Donald Trump said that a deal to end the war with Iran is nearly complete and is expected to be signed over the weekend in Europe, as he called off military strikes on the gulf nation hours after threatening to take control of its oil industry.
Trump, speaking to reporters at the Oval office on Thursday afternoon, said Vice President J D Vance is expected to attend the signing ceremony which could take place in Europe as soon as this weekend.
Later, addressing a tele-rally in favour of Georgia Lt Governor Burt Jones, who is running for the post of Governor, Trump declared that the US has ended the war with Iran.
"I don't know if you heard, but we ended the war with Iran today (Thursday), and they have agreed never to have a nuclear weapon, something that we insisted on. That was the whole purpose," Trump said.
From the 30-Sensex firms, InterGlobe Aviation, Larsen & Toubro, Bajaj Finance, Eternal, Trent and HDFC Bank were among the biggest winners.
Tech Mahindra was the only laggard from the pack.
Brent crude, the global oil benchmark, dropped 1.62 per cent to USD 88.92 per barrel.
In Asian markets, South Korea's Kospi jumped over 8 per cent, while Japan's Nikkei 225 index climbed more than 3 per cent. Shanghai's SSE Composite index and Hong Kong's Hang Seng index were also quoting higher.
US markets ended significantly higher on Thursday.
"The biggest overnight trigger came from the United States, where markets rebounded strongly after President Donald Trump signalled a diplomatic breakthrough with Iran and called off planned military strikes.
"The development significantly reduced geopolitical risk premiums that had been weighing on global equities and energy markets over the past week," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
"For India, the most significant macro development is the sharp decline in crude oil prices. Brent crude has corrected nearly 4 per cent, easing concerns around imported inflation, the current account deficit, and rupee stability," Hariprasad added.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,987.09 crore on Thursday, according to exchange data.
In the previous session, the 30-share BSE Sensex declined 150.63 points, or 0.20 per cent, to settle at 73,832.55. The Nifty edged lower by 53.35 points, or 0.23 per cent, to end at 23,161.60.